U.S. Mint Sales Rise Sharply in October

13 October 2016 — Thursday


The gold price chopped about four bucks higher until minutes after 12 o’clock noon China Standard Time on their Wednesday.  That turned out to be the high tick of the day, as the price was sold lower, with the low tick being printed about ten minutes before the COMEX open in New York.  It rallied until precisely 10:00 a.m. EDT — and then had a 4-hour long down/up move before trading virtually flat from about 2:30 p.m. EDT onwards.

The high and low ticks aren’t worth looking up.

Gold finished the Wednesday session in New York at $1,254.90 spot, up $2.50 on the day.  Net volume, which was pretty quiet initially, picked up as the day went on — and checked in at 111,000 contracts, a bit less than it was on Tuesday.161013gold

Silver’s high tick of the day, such as it was, came shortly before 1 p.m. in Shanghai.  The low of the day, like in gold, came shortly before the COMEX open — and silver’s subsequent rally topped out at precisely 10:00 a.m. EDT as well.  It sold off about 15 cents from there, but began to rally anew starting just before 11:30 a.m. — and that was capped and rolled over staring around 2:20 p.m. in the thinly-traded after-hours session.  From there it was sold down in the close.

Silver was forced to trade within a two bit price range all Wednesday long on Planet Earth, so I shall dispense with the high and low ticks on this precious metal as well.

Silver finished the day at $17.45 spot, up only 2.5 cents on the day.  Net volume was a hair over 40,000 contracts.161013silver

Platinum rallied a small handful of dollars in morning trading in the Far East yesterday, but the price began to drift lower starting shortly before 1 p.m. in Shanghai.  Then, like gold and silver, the plug got pulled on the price about ten minutes before the COMEX open — and the low tick of the day was printed shortly before 9 a.m. EDT.  Then, also like silver and gold, the platinum price chopped generally higher until about 2:20 p.m. — and from there traded almost flat into the close.  Platinum finished the day in New York yesterday at $940 spot — and down another 6 bucks.  It was down $17 dollars at its low tick.161013platinum

Palladium didn’t do much from a price perspective on Wednesday — and in most instances was a mini version of the price action in the other three precious metals, especially from 8:00 a.m. EDT onwards.  It finished the day back at unchanged at $646 spot.161013palladium

The dollar index closed in New York very late on Tuesday afternoon at 97.72 and, like it’s been doing all week, began to rally almost right out of the chute when trading began at 6:00 p.m. EDT.  It chopped quietly higher until it broke above the 98.00 mark around 11:35 a.m. in New York.  It shed about 40 basis points of its earlier gains by around 2:15 p.m. EDT — and then rallied back to a hair under the 98.00 mark at the close.  The dollar index finished the day at 97.995 — and up another 29 basis points.161013intraday-gif

And here’s the 6-month U.S. dollar index — and as you can tell, it’s getting as overbought as the precious metals are oversold.161013-6-month-usd

The gold shares opened unchanged, rallied until exactly 10 a.m. — and then retouched the unchanged mark at 11 a.m., which was the London close.  Then away they went to the upside, with their high tick coming at the low point in the dollar index swoon, which occurred around 2:20 p.m. EDT.  They chopped lower from there into the close.  The HUI finished the Wednesday session up 2.30 percent.161013huiThe silver equities traded in an almost identical fashion, so I shall skip the play-by-play.  Nick Laird’s Intraday Silver Sentiment/Silver 7 Index closed higher by 1.69 percent.  Click to enlarge if necessary.161013silver-7

The CME Daily Delivery Report showed that 41 gold and zero silver contracts were posted for delivery within the COMEX-approved depositories on Friday.  Goldman Sachs was the only short/issuer of note with 28 contracts out of its client account, plus another 11 out of its own account.  JPMorgan stopped 31 contracts for its client account, with Scotiabank as an ‘also ran’ with 7 contracts for its own account.  The link to yesterday’s Issuers and Stoppers Report is here.

The CME Preliminary Report for the Wednesday trading session showed that gold open interest in October rose another 40 contracts, leaving 192 left, minus the 41 mentioned in the previous paragraph.  Tuesday’s Daily Delivery Report showed that only 3 gold contracts were posted for delivery today, so that means another 3+40=43 gold contracts were added to the October delivery month.  Silver o.i. in December rose by another 2 contracts, leaving 116 still around.  And since Tuesday’s Daily Delivery Report showed that zero silver contracts were posted for delivery today, that obviously means that on a net basis there 2 silver contracts added to the October delivery month yesterday.

Once again there were no reported changes in GLD — and as of 7:03 p.m. EDT yesterday evening, there were no reported changes in SLV, either.

The folks over at Switzerland’s Zürcher Kantonalbank updated their website with the goings-on inside their gold and silver ETFs as of the close of business on Friday, October 7 — and this is what they had to report.  They added a tiny 662 troy ounces to their gold ETF…but their silver ETF went the other direction, as its holdings declined by 82,402 troy ounces.

Another day — and another sales report from the U.S. Mint.  They sold 5,000 troy ounces of gold eagles — 1,500 one-ounce 24K gold buffaloes, but no silver eagles.

Ted mentioned on Saturday that he suspected that a “big buyer” had turned up in gold eagles sales — and in his mid-week column yesterday he surmised that “…another report of large sales on Monday forces me to rely more on the suspicion that JPMorgan has reemerged as the big buyer of Silver Eagles.”  That’s a very reasonable assumption on both counts — and I agree wholeheartedly.

There was no gold reported received at the COMEX-approved depositories on Tuesday, but 96.450 troy ounces/3 kilobars were shipped out of Manfra, Tordella & Brookes, Inc. — along with another 44,384 troy ounces out of Scotiabank’s vault.  A link to that activity is here.

It was far busier in silver, as 581,935 troy ounces were received and, with the exception of three good delivery bars, it all ended up in Scotiabank’s vault.  There was 902,910 troy ounces shipped out the door for parts unknown — and that amount was almost equally divided between Brink’s, Inc. and CNT, along with five good delivery bars out of HSBC USA as well.  The link to that action is here.

There wasn’t much received at the COMEX-approved gold kilobar depositories in Hong Kong on their Tuesday, as only 207 were taken in.  But a very chunky 5,362 kilobars were shipped out.  All of the action was at Brink’s, Inc. — and the link to that, in troy ounces, is here.

I have a very decent number of stories again today — and I hope you have enough time to read the ones that interest you.


Yet Another Stock Market Speed Bump Divides Some Top Traders

The latest proposal to slow down the U.S. stock market has divided some of the fastest traders.

The Chicago Stock Exchange wants to delay certain kinds of trading, arguing it would make the market fairer by blunting advantages of some speedy traders. Hudson River Trading LLC urged regulators to reject the plan, saying in a letter dated Thursday that it would unfairly boost a subset of traders.

CHX is proposing to implement a feature that allows it to pick winners and losers,” Adam Nunes, head of business development at New York-based Hudson River, wrote in the letter. “It has no reasonable justification for why it is attempting to discriminate among its market participants, and CHX’s commercial interests should not allow it to unfairly discriminate among its members or to put an undue burden on competition among competing exchanges or among its members.

In opposing the speed bump, Hudson River split from competitor Virtu Financial Inc., an early cheerleader for CHX’s proposal. The divergence has echoes of a recent controversy over IEX Group Inc., which just opened the Investors Exchange that features a 350-microsecond speed bump on orders. IEX’s approval process generated huge amounts of scorn from critics and praise from supporters. Hudson River opposed IEX applying a speed bump to its exchange, while Virtu said the delay had “no impact” on its own trading strategies.

There’s a crucial difference in the Chicago market’s plan to delay its own market: while IEX slows down all traders, the CHX delay will only apply to traders that “take” liquidity — in other words, only traders attempting to buy or sell against a quote posted on the market.

This very interesting Bloomberg article was posted on their Internet site at 3:04 p.m. Denver time on Tuesday afternoon and it comes to us courtesy of Brad Robertson via Zero Hedge.  Another link to this news item is here.

More Americans Falling Behind on Car Loan Payments, S&P Says

Subprime borrowers are falling behind on their car loan payments at the highest rate in more than six years, and some bonds backed by these loans are vulnerable to getting downgraded, according to S&P Global Ratings.

Competition has spurred lenders to loosen standards and resulted in more delinquencies and default by people with weak credit, the ratings firm said. Subprime borrowers were behind by more than 60 days on about 4.85 percent of auto loans in August, the highest level since January 2010. The rate was 4.14 percent in August of last year, S&P said. For prime loans, delinquencies in August rose to 0.5 percent from 0.41 percent in the same month in 2015. The figures apply to loans that have been bundled into bonds.

The ratings firm said it may have to downgrade some subprime auto loan securities that have high-yield grades because of the increased delinquencies and loan losses, a statement it first made last month.

Some investors believe that subprime auto loans will continue to deteriorate, and have looked for ways to bet against them. After the financial crisis, mortgage lenders have been required by law to verify that applicants can repay their debt, but car lenders do not have that obligation. In the 12 months ended in June, only 5.2 percent of car loan applications were rejected, down from 11.1 percent in the 12 months ended in October 2015, according to research from the Federal Reserve Bank of New York. Lenders are making longer-term loans than before, and used car prices have fallen, which also could hurt loan recoveries, S&P said on Tuesday.

Haven’t we seen this movie before, dear reader?  I think it started about ten years ago — and ran in theatres until 2009 and sometime.  Then they made a real movie out of it just this year…The Big Short.  Ah, yes…it’s all coming back to me now, as it is for you, I’m sure — and it doesn’t have a happy ending, does it?  This Bloomberg news item appeared on their website at 3:14 p.m. Denver time on Tuesday afternoon — and was updated about eighteen hours later.  I found it in yesterday’s edition of the King Report — and another link to it is here.

HSBC: Red Alert — Get ready for a ‘severe fall‘ in the stock market

HSBC’s technical analysis team has thrown up the ultimate warning signal.

In a note to clients, Murray Gunn, the head of technical analysis for HSBC, said that he is now on “RED ALERT” for an imminent sell-off in stocks given the price action over the last few weeks.

Gunn uses a type of technical analysis called the Elliott Wave Principle, which tracks alternating patterns in the stock market to discern investors behavior and possible next moves.

In late September, Gunn said the stock market’s moves looked eerily similar to just before the 1987 stock market crash. Of note, Citi’s Tom Fitzpatrick also highlighted the market’s similarities to the 1987 crash just a few days ago. Then on September 30, Gunn said stocks were under an “orange alert” as they looked as if they had topped out.

And now given the 200 point decline for the Dow on Tuesday, Gunn said that the drop is here.

Of course this will only occur if the ‘President’s Working Group’/PPT allow it, as they stand ever ready to provide whatever ‘assistance’ is required to prevent that very thing from happening…as we found out starting with the crash of ’87.  This story was posted on the nordic.businessinsider.com Internet site around 2 p.m. Europe time on their Wednesday afternoon, which was about 8 a.m. in New York — EDT plus 6 hours — and I thank Swedish subscriber Patrik Ekdahl for pointing it out.  Another link to it is here.

Lloyds Banking Group cuts 1,230 jobs as part of strategic overhaul

State-backed Lloyds Banking Group said on Wednesday it planned to axe 1,230 jobs as part of a three-year restructuring plan aimed at cutting costs and improving returns for shareholders.

Employee union Unite branded the job losses, expected to hit the lender’s retail banking, Group Operations, Customer Products & Marketing, and Finance and Risk divisions, as “horrific“.

The net total of planned layoffs is inclusive of 110 new roles that will be created across these business areas, the bank said.

Lloyds announced in July it would cut a further 3,000 jobs and close 200 branches amid a more testing economic environment caused by Britain’s vote to quit the European Union.

The bank has already cut about 4,000 positions from its 75,000-strong workforce in 2016 and has closed around 100 branches so far this year.

This news item put in an appearance on the uk.reuters.com Internet site at 11:39 a.m. BST on their Wednesday morning, which was 6:39 a.m. in New York — EDT plus 5 hours.  It’s the second offering in a row from Patrik Ekdahl — and another link to it is here.

If Europe insists on a hard Brexit, so be it — Ambrose Evans-Pritchard

If the central purpose of Brexit is to restore the supremacy of Parliament, we should congratulate Labour for forcing a debate on the proposed terms of withdrawal. Let us demand that M.P.s should have a vote as well.

Brexit belongs to no faction. The referendum was not an election where the winner takes all. The circumstances are entirely sui generis and extremely delicate.

The exact contours of Brexit were never defined. There was no Manifesto. The binary ballot presented to us on June 23 – nolens volens – contained not a single word about immigration. Many who voted to leave the E.U. want a liberal, amicable, open settlement with Europe.

It is the proper role of Parliament to discern the national will, and to impose its verdict on ministers. Theresa May is well-advised to bow to this imperative before Article 50 is triggered, even if raucous wrangling in the House greatly complicates negotiating tactics with Brussels.

Both Scotland and Northern Ireland voted to remain, and the constitutional implications of this have yet to be confronted. A great majority of those below the age of thirty opposed Brexit, and many feel betrayed. It amounts to an inter-generational crisis.

This longish commentary by Ambrose is definitely worth reading if you have the interest.  It appeared on the telegraph.co.uk Internet site at 8:28 p.m. BST yesterday evening, which was 3:28 p.m. in Washington.  I thank Roy Stephens for sending it our way just before midnight Denver time last night — and another link to it is here.

E.U. Seeks €20 Billion Brexit Divorce Settlement

The price of Brexit is high and rising.

On top of previous demands such as a “fair but inferior deal” for the U.K.,  the E.U. now wants a €20 billion divorce settlement as the U.K.’s “fair share” of inane projects the U.K. agreed to as part of the E.U.

E.U. officials insist the U.K. is on the hook for past spending commitments.

Inane E.U. projects provide yet another reason the U.K. was wise to kiss the E.U. goodbye.

Meanwhile the E.U. demands on the U.K. keep mounting.

This new story showed up on the mishtalk.com Internet site just after midnight EST this morning — and it appears that a goodly chunk of it was ‘borrowed’ from a linked Financial Times article.  It’s the final contribution of the day from Roy Stephens, for which I thank him — and another link to this article is here.

Catastrophic results for Ericsson caught analysts completely by surprise – a heavy blow for half a million Swedes

The Ericsson stock is presently down 16{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} after a few hours of trade on Wednesday. Immediately after the trade opened the stock quickly plummeted over 18{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e}. The market is reacting to Ericsson’s reported results which were much worse than anyone expected despite prolonged poor performance.

Along with disappointing figures for the third quarter Ericsson also issued a profit warning. Sales decreased 14{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} compared to the third quarter 2015. The operating profit amounted to only SEK 300 million, where analysts were expecting as much as SEK 3,5 billion.

Ericsson attributes the falling sales to the Middle East, Russia and Brazil. But the negative trend on those markets has deteriorated faster than expected.

It’s a lot worse than what anyone thought,” Jonas Olavi, analyst at Alfred Berg tells Svenska Dagbladet. “Everyone was probably prepared for weaker results, but not this bad.”

This story was posted on the nordic.businessinsider.com Internet site around noon Europe time — and I thank Patrik Ekdahl for this article as well.  Another link to it is here.

Doug Casey on “Quitaly” and the Collapse of the E.U.

Nick Giambruno: Doug, you predicted the fall of the European Union a few years ago. What has changed since then?

Doug Casey: Well, what’s changed is that the entire situation has gotten much worse. The inevitable has now become the imminent.

The European Union evolved, devolved actually, from basically a free trade pact among a few countries to a giant, dysfunctional, overreaching bureaucracy. Free trade is an excellent idea. However, you don’t need to legislate free trade; that’s almost a contradiction in terms. A free trade pact between different governments is unnecessary for free trade. An individual country interested in prosperity and freedom only needs to eliminate all import and export duties, and all import and export quotas. When a country has duties or quotas, it’s essentially putting itself under embargo, shooting its economy in the foot. Businesses should trade with whoever they want for their own advantage.

But that wasn’t the way the Europeans did it. The Eurocrats, instead, created a treaty the size of a New York telephone book, regulating everything. This is the problem with the European Union. They say it is about free trade, but really it’s about somebody’s arbitrary idea of “fair trade,” which amounts to regulating everything. In addition to its disastrous economic consequences, it creates misunderstandings and confusion in the mind of the average person. Brussels has become another layer of bureaucracy on top of all the national layers and local layers for the average European to deal with.

The European Union in Brussels is composed of a class of bureaucrats that are extremely well paid, have tremendous benefits, and have their own self-referencing little culture. They’re exactly the same kind of people that live within the Washington, D.C. beltway.

This Q&A with Doug and Nick Giambruno is definitely worth reading if you have the time and/or the interest.  It showed up on the internationalman.com Internet site yesterday — and another link to it is here.

Turkey purges NATO military envoys after failed coup

Turkey has fired hundreds of senior military staff serving at NATO in Europe and the United States following July’s coup attempt, documents show, broadening a purge to include some of the armed forces’ best-trained officials.

In a classified military dispatch seen by Reuters, 149 military envoys posted to the alliance’s headquarters and command centers in Germany, Belgium, the Netherlands and Britain were ordered on Sept. 27 to return to Turkey within three days.

Most were dismissed from service on their arrival, arrested and imprisoned, according to a Turkish military official at NATO and two farewell letters sent by departing Turkish officials emailed to colleagues at NATO and seen by Reuters.

One of those letters wrote of a “witch-hunt” of senior air force commanders serving overseas.

In total, about 400 military envoys have been fired so far, the Turkish military official said. Two non-Turkish NATO staff familiar with the situation confirmed that Turkish personnel are being recalled but did not have more details.

This news story, filed from Brussels, appeared on the reuters.com Internet site at 6:56 a.m. on Wednesday morning EDT — and it’s another article from Brad Robertson via Zero Hedge.  Another link to it is here.

Putin Slams Russia Hacking Accusation: “Just a Ploy to Divert Attention From the Contents

After Russia’s foreign minister trolled the U.S. election, describing it as a “pussy galore” moment, when in an interview with CNN‘s Christine Ammanpour, he sad “there are so many pussies around your presidential campaign on both sides that I prefer not to comment,” his boss, Vladimir Putin also went on the record to address the allegation by U.S. intelligence services which last Friday officially accused the Kremlin of coordinating the ongoing cyber-attacks targeting democrats, and said that the scandal that hacking scandal has not been in Moscow’s interests and both sides in the U.S. election campaign are just using Russia to score points.

The Russian leaders’ statement comes one day after the White House did not reveal how if at all, it would respond to “Russia’s hacking“, but said it would consider a variety of responses to the alleged hacks.

Putin accused the U.S. of “starting this hysteria, saying that this (hacking) is in Russia’s interests. But this has nothing to do with Russia’s interests,” in a speech during a business forum in Moscow.

He added that the accusations were a ploy to divert U.S. voters’ attention at a time when public opinion was being manipulated. “Everyone is talking about ‘who did it’ (the hacking),” said Putin. “But is it that important? The most important thing is what is inside this information.

Well, yes, but…oh look, Trump talking about grabbing pussy!

U.S. politics — and the U.S. media — have both degenerated into frat room farce.  Putin and Lavrov are two of the only adult politicians out there these days.  How did it come to this?  This Zero Hedge article was posted on their website at 2:46 p.m. on Wednesday afternoon EDT — and I thank ‘aurora’ for passing it around.  Another link to it is here.

The Eurasian Century is Now Unstoppable — F. William Engdahl

I recently returned from a fascinating two week speaking tour in China. The occasion was the international premier of my newest book, One Belt, One Road–China and the New Eurasian Century.

In the course of my visit I was invited by China’s Northwest University in Xi’an to give a lecture and seminar on the present global political and economic situation in the context of China’s New Economic Silk Road as the One Belt, One Road project is often called.

What I’ve seen in my many visits to China, and have studied about the entirety of this enormously impressive international infrastructure project convinces me that a Eurasian Century at this point is unstoppable.

The idiotic wars of the Washington war-hawks and their military industry–in Syria, in Ukraine, Libya, Iraq and now the South China Sea provocations against China–are not going to stop what is now clearly the most impressive and economically altering project in more than a century.

The term “American Century” was triumphantly proclaimed in a famous editorial in Life magazine in 1941 in the early phase of World War II, before the United States had even entered the war, to describe the system publisher Henry Luce saw dominating the postwar world after the fall of the rival British Empire.

The American Century has lasted a mere seven decades if we date from the end of the war. Its record has been one of dismal failure on balance. The industrial base of the United States, the predominant leading industrial nation and leading scientific innovator, today is a hollowed, rotted shell with once-booming cities like Detroit or Philadelphia or Los Angeles now burned-out ghettos of unemployed and homeless.

This long commentary by Engdahl appeared on the strategic-culture.org Internet site on Monday — and is definitely worth reading, especially if you’re a serious student of the New Great Game.  And if you don’t have time just now, it will also appear in my Saturday column.  I thank U.K. reader Tariq Khan for bringing it to our attention.  Another link to this long essay is here.

Singapore-based Saka Capital’s demise points to a gloomy future for credit hedge funds

First, let’s have a moment of silence for the brave folks at Saka Capital, which at one point was referred to by banks as one of the largest credit hedge funds based in Asia. And before we move on with our lives, take a few minutes to understand why this isn’t just one more money manager throwing in the towel: Saka embodies all the challenges that suggest many other firms could die before alpha returns to credit markets.

The Singapore-based asset manager is closing the SakaCapital Liquid Credit Fund and returning money to investors, Chief Executive Officer Assan Din told Bloomberg’s Klaus Wille in an interview. The firm will convert to a family office investing for the management team and people close to them. That comes after the fund achieved annualized 7 percent returns in the past six years. Yet as Din himself put it:

Because of the low interest-rate environment, high valuations across all asset classes and lack of liquidity in the market we believe the return profile of the hedge fund industry will be lower over the coming years.

As I pointed out in August, the zero or very low interest rate environment boosts all assets with long duration. That’s a killer for long-short hedge funds, which thrive on volatility. And that’s part of the reason why Saka’s closure could be soon followed by others.

This worthwhile article by Bloomberg columnist Christopher Langner was posted on their Internet site at 11:33 p.m. EDT on Tuesday morning — and comes courtesy of Brad Robertson via Zero Hedge once again.  And another link to this story is here.  The ‘though police’ at Bloomberg have now changed the headline to read “Requiem for a Hedge Fund Dream“.

Regime Change in The Philippines — Paul Craig Roberts

When will the neoconservative chant begin: “Duterte must go”?   Or will the CIA assassinate him?

President Rodrigo Duterte has indicated that he intends a more independent foreign policy. He has announced upcoming visits to China and Russia, and his foreign minister has declared that it is time for the Philippines to end its subservience to Washington. In this sense, regime change has already occurred.

Duterte has suspended military maneuvers with the U.S. His defense minister said that the Philippines can get along without U.S. military aid and prefers cooperation over conflict with China.

Duterte might simply be trying to extract a larger pay-off from Washington, but he had better be careful. Washington will not let Duterte move the Philippines into the Chinese camp.

Unless, of course, Washington has bitten off more than it can chew in the Middle East, Africa, South America, Ukraine, Russia and China and is too occupied elsewhere to deal with the Philippines. Still, Duterte would do well to request a praetorian guard from China.

This commentary by Paul showed up on his website yesterday — and Roy Stephens slid it into my in-box last night.  It’s certainly worth reading — and another link to it is here.

Samsung slashes third quarter profit estimate by a third after pulling plug on Galaxy Note 7

Samsung Electronics Co slashed its quarterly profit estimate by a third on Wednesday, soaking up a $2.3 billion hit from ditching its flagship smartphone in what could be one of the costliest product safety failures in tech history.

Quantifying the financial pain of Tuesday’s move to scrap the Galaxy Note 7 smartphone after a global recall and weeks of mounting problems, the world’s top smartphone maker said it expects its July-September operating profit was 5.2 trillion won ($4.7 billion), down from the 7.8 trillion won it estimated five days ago.

Samsung said in a statement the 2.6 trillion won ($2.3 billion) guidance cut reflects the sales and earning impact it currently expects from the decision to permanently halt sales of the $882 Note 7 device. Its third-quarter revenue estimate was also cut to 47 trillion won from 49 trillion won previously.

The new earnings guidance is 30 percent below third-quarter 2015’s operating profit, and left investors and analysts pondering the longer impact on Samsung’s brand and earnings. Rival suppliers of smartphones that use the Android operating system, like Samsung’s, stand to benefit if the Note 7 damage drive consumers elsewhere.

This Reuters article, filed from Seoul, put in an appearance on their website at 10:38 a.m. EDT yesterday morning — and it’s the final contribution of the day from Brad Robertson/Zero Hedge.  Another link to this news story is here.

Market Slant: What happens next in anti-trust suit against London gold fix banks

Market Slant, which last week broke the story about the advancement of the anti-trust lawsuit against the banks involved with the daily London gold fix, now examines the discovery procedures ahead as the plaintiffs pry evidence out of the defendants, a process that could take a long time but also produce much incriminating evidence.

Market Slant’s report is headlined “Gold Fix: Scotiabank Ordered to Produce Internal Documents” — and it was posted on their website at 3:01 p.m. on Tuesday afternoon EDT.  I found this story embedded in a GATA release yesterday. The Click to Enlarge feature on helps the cartoons.

The PHOTOS and the FUNNIES161013photo



Not much changed after yesterday’s trading action, although ‘da boyz’ did set a new low price for this move down in platinum.  Gold and silver continue to hover around either side of their respective 200-day moving averages — and the only question facing us now is whether or not we have a counter-trend rally of some sort before JPMorgan et al  resume hammering the precious metals to to the downside again.

Here are the 6-month charts for all four precious metals once again — and their isn’t much to see here.161013-6-month-gold


And as I type this paragraph, the London open is less than ten minutes away and I see that after the obligatory sell-off in early trading in the Far East, the price began to rally shortly after 9 a.m. China Standard Time.  That rally topped out around 11:30 a.m. in Shanghai on their Thursday morning — and has been more or less chopping sideways since.  Currently gold is up $4.30 the ounce.  Silver has been in positive territory ever since trading began at 6:00 p.m. EDT in New York yesterday evening, with the current high tick coming minutes after 12 o’clock noon in Shanghai — and it has been quietly heading lower since — and is only up 10 cents at the moment.  Platinum followed a mini version of the gold price action — and is up only a dollar.  Palladium has been under a bit of selling pressure, which started shortly before 8 a.m. CST — and it’s down 6 bucks.

Net HFT gold volume is just under 32,000 contracts, so it’s obvious that the morning rally in Far East trading did not go unopposed. Silver’s net HFT volume is about 7,200 contracts.  The dollar index made it up to a bit over 98.10 by 9 a.m. China Standard Time, but rolled over sharply at that juncture — and was down about 35 basis points from its high tick by 10:30 a.m. CST.  It rallied weakly from there — and made another stab at the 98.00 mark at precisely 2 p.m. in Shanghai trading, but that got turned aside.  The dollar index is sitting at 97.91 — and down 9 basis points from its Wednesday close.

I would guess that the rallies in gold, silver and platinum were related to these morning movements in the currency market.

Tomorrow we get the latest and greatest Commitment of Traders Report and, as Ted vehemently pointed out in his mid-week column on Wednesday…”but absent a JPMorgan double cross, there doesn’t appear to be enough managed money selling to pronounce a bottom in traditional COT terms.

I haven’t exactly been silent on that subject myself — and unfortunately all we can do is watch and wait for whatever develops.

And as I post today’s effort on the website at 4:00 a.m. EDT, I see that the gold price is a bit lower now that London has been open an hour, but it’s still up $3.70 the ounce.  Silver is still up 9 cents — and off it’s earlier low.  Platinum is down a bit more…a dollar below unchanged — and palladium is down 6 bucks.

Net HFT volume is gold is just over 37,000 contracts now, up about 5,000 contracts or so from an hour ago — and that number in silver is creeping up on 9,000 contracts.  The dollar index is now back to unchanged at the 98.00 mark, after being down a bit an hour ago.

It’s another day where I haven’t a clue as to what will happen from a price perspective.  But I do know that unless a black swan shows up that throws a spanner in the works, any price activity both up and down will be the continued dance between the Managed Money traders and JPMorgan et al, as ‘da boyz’ are still very much in control.

That’s all I have for today — and I’ll see you here tomorrow.


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