Gold Open Interest For November Delivery Jumps by 1,017 Contracts

18 November 2016 — Friday


The gold price was slightly elevated in Far East trading on their Thursday — and was up about 3 bucks at the London open.  It tried to rally further, but was rather brutally capped at the $1,230 spot mark for almost the full two hours leading up to the noon GMT silver fix.  It was back to unchanged on the day by shortly after 12 o’clock noon in New York — and at that juncture it got the rug pulled out from under it, with the low tick coming at a minute or so after 2 p.m. EDT.  It chopped mostly higher after that — and it’s obvious from the chart pattern, that any serious rally attempt after that, got capped.

The high and low ticks were reported by the CME Group as $1,231.10 and $1,210.50 in the December contract.

Gold finished the Thursday session in New York at $1,216.30 spot, down $8.70 on the day.  Net volume was very heavy at just under 193,000 contracts — and roll-over activity out of December was nothing special.161118gold

Here’s the 5-minute gold price tick chart courtesy of Brad Robertson.  There were a couple of interesting price spikes outside of COMEX trading.  The first one was on the tiny rally just before the price was locked down at the $1,230 spot mark in the two hours leading up to the noon London silver fix.  The other was when the price was rolled over into the 8:20 a.m. EST COMEX open, which is 06:20 a.m. Denver time on the chart below.  Of course the stand-out feature was the engineered price decline that began at 12:30 p.m. in New York, which was 10:30 a.m. MST.  Volume didn’t really fall off to background levels until after 2 p.m. Denver time/4 p.m. in New York, which is on the extreme right-hand side of the chart.

The vertical gray line is 10:00 p.m. Denver time, midnight in New York — and 1:00 p.m. China Standard Time [CST] the following afternoon in Shanghai—and don’t forget to add two hours for EST.  The ‘click to enlarge‘ is a must for this chart.161118-5-minute-gold

Silver traded mostly lower in the Far East until the dollar index rolled over — and then it rallied into the London open — and by 9 a.m. GMT, the powers-that-be had the price locked down in that precious metal as well.  It then headed lower until around 8:45 a.m. in New York — and then the price didn’t do much until ‘da boyz’ spun their algorithms around 12:30 p.m. EST.  The spike low tick was punched around 2:20 p.m. in after-hours trading — and it rallied a bit starting around 3:15 p.m., but wasn’t allowed to get far.

The high and low tick in this precious metal were recorded as $17.08 and $16.575 in the December contract.

Silver was closed on Thursday at $16.635 spot, down 32.5 cents.  Silver volume was very decent, but not overly heavy considering the price move.  It checked in at just under 49,500 contracts.161118silver

And here’s the 5-minute silver tick chart courtesy of Brad as well.  Like in gold, note the big volume spike right at the COMEX open.  Also like gold, all the volume that mattered was on that vicious sell-off that was begun starting at 12:30 p.m. in New York.  It should be pointed out that the low tick price spike on the Kitco chart above, is nowhere to be seen on the 5-minute tick chart below.

Like the 5-minute gold tick chart, the vertical gray line is 10:00 p.m. Denver time, midnight in New York — and 1:00 p.m. China Standard Time [CST] the following afternoon in Shanghai—and don’t forget to add two hours for EST.  The ‘click to enlarge‘ is a must here as well.161118-5-minute-silver

The platinum price chopped sideways a few dollars either side of unchanged until 1 p.m. Zurich time, which was the noon silver fix in London.  Then, like gold and silver, it was sold lower until 8:45 a.m. in New York as well.  It rallied briskly from there — and began to run away to the upside just minutes before the Zurich close — but got capped and sold lower starting a few minutes after Zurich was done for the day.  Its $930 spot low tick came just before 4:00 p.m. EST in after-hours trading — and also like gold and silver, rallied a bit into the close.  Platinum finished the Thursday session in New York at $932 spot, down 10 dollars from Wednesday.161118plati

Palladium continues to hoe its own row.  It didn’t do a thing in Far East or Zurich trading — and was up a few dollars by the COMEX open.  Then, like platinum, in the last few minutes before the Zurich close it zoomed higher — and also like platinum, had its price capped a few minutes after the Zurich close.  By the end of the day in New York, half of those earlier gains had disappeared.  But despite that fact, palladium finished on a new high for this move, closing at $726 spot, up another 9 bucks.161118plad

The dollar index closed very late on Wednesday afternoon in New York at 100.30 — and was down 15 basis points by 9:30 a.m. China Standard Time on their Thursday morning.  It worked its way higher from there, making it up to about the 100.43 mark by 2:35 p.m. CST.  It began heading lower with a vengeance about an hour later — and that’s when the precious metals began to head higher.  The 99.96 low tick was printed around 12:25 p.m. GMT in London — and I would guess that the usual ‘gentle hands’ put in an appearance at that juncture.  By the time they were done with the ensuing ‘rally’, the 101.01 high tick had been printed at 5:30 p.m. EST, which was shortly before trading ended.  The dollar index finished the Thursday session at 100.96 — and up 66 basis points from its close on Wednesday.

You should carefully note that the big declines in gold and silver didn’t occur until the lion’s share of the U.S. dollar index gains were in for the day, so it’s obvious that they were given a shove at 12:30 p.m., or they wouldn’t have declined at all.161118intraday-gif

And here, once again, is the 6-month U.S. dollar index — and you have to wonder how long they can keep this thing levitated.161118-6-month-usd

The gold stocks opened just above unchanged, with their respective high ticks coming at the London p.m. gold fix.  They slid a bit from there, but still remained in positive territory.  That ended the moment that JPMorgan et al went to work on the gold price at 12:30 p.m.  Their respective low ticks came around 3:15 p.m. — and they rallied, following the gold price, into the close.  The HUI finished down 2.42 percent.161118hui

The silver equities followed an identical pattern, except they were up even more than their golden cousins during morning trading in New York — and only succumbed when the silver price was scuppered at the same time as gold.  The rest of the trading day was the same as the gold shares.  Nick Laird’s Intraday Silver Sentiment/Silver 7 Index closed down 1.87 percent.  Click to enlarge if necessary.161118silver-7

It should obvious to all and sundry that the precious metal equities would have closed up on the day if it hadn’t been for ‘da boyz’.

The CME Daily Delivery Report showed that an eye-opening 522 gold contracts, plus zero silver contracts were posted for delivery within the COMEX-approved depositories on Monday.  Goldman Sachs issued 519 contracts out of its client account — and Canada’s Scotiabank picked up 515 of them for its own account.  The rest of the contracts really don’t matter — and the link to yesterday’s Issuers and Stoppers Report is here.

The CME Preliminary Report for the Thursday trading session showed that gold open interest in November rose by an astonishing 1,016 contracts, leaving 1,075 still open, minus the 519 contracts mentioned in the previous paragraph, so there are obviously more deliveries to come.  Wednesday’s Daily Delivery Report showed that 1 gold contract was posted for delivery today, so that means that 1+1,016=1,017 gold contracts were added to the November delivery month.  Silver o.i. in November remained unchanged for the second day in a row, leaving 1 contract open.  Wednesday’s Daily Delivery Report showed that zero silver contracts were posted for delivery today, so that works exactly right.

With this huge jump in gold open interest — and a large delivery following hard on the heels of that increase, will it be the same issuer and stopper — Goldman and Scotiabank — when the rest of deliveries shows up, I wonder?  We’ll find out soon enough I would think.  It’s obvious that someone wanted three tonnes of gold in hurry!

Another day — and another withdrawal from GLD.  This time an authorized participant removed 181,144 troy ounces.  And as of 7:51 p.m. EST yesterday evening, there were no reported changes in SLV.

Except for the conversion of 8.5 million SLV shares into physical silver on October 27 and November 2…there hasn’t been much in the way of withdrawals from SLV…and I’m wondering who might be gobbling up all these SLV shares that have been falling off the table for the last week.  I’m sure that Ted would say that it was JPMorgan — and I’m not about to disagree, but I did point out that if Scotiabank is the other big short, they could snapping them up as well.  We’ll see.

There was another sales report from the U.S. Mint yesterday.  They sold 4,000 troy ounces of gold eagles — 2,000 one-ounce 24K gold buffaloes — plus 150,000 silver eagles.

There was no ‘in’ activity over at the COMEX-approved gold depositories on the U.S. east coast on Wednesday — and the only ‘out’ activity was 37,776.250 troy ounces/1,175 kilobars [U.K./U.S. kilobar weight] shipped out of Canada’s Scotiabank.  Another link to that activity is here.

It was another fairly busy day in silver, as 812,318 troy ounces were received, but only 93,162 troy ounces were shipped out.  The big ‘in’ activity was at Canada’s Scotiabank with 779,140 troy ounces received.  The rest of the activity, both in and out, was at CNT — and a link to all that is here.

Over at the COMEX-approved gold kilobar depositories in Hong Kong on their Wednesday, the high level of in/out activity continues to amaze me.  They reported receiving 1,940 kilobars — and shipped out 6,123 of them  All of that action was at Brink’s, Inc. — and the link to that, in troy ounces, is here.

One again I don’t have all that many stories for you today — and for the second day in a row, that makes your final editing job pretty easy.


Yellen steams ahead on Fed rate rise but concerns mount on dollar shock — Ambrose Evans-Pritchard

A defiant Janet Yellen has vowed to complete her full term as chairman of the US Federal Reserve and defend the institution’s independence, swatting aside vitriolic attacks on her policies by Donald Trump during the campaign.

I was confirmed by the Senate for a four-year term, which ends in January 2018, and it’s fully my intention to serve out that term,” she told Congress.

Mr. Trump lambasted the Fed before his election for supposedly debauching the money supply, and accused Mrs. Yellen personally of holding down interest rates to help the Democrats.

His attacks broke a long-standing taboo over Fed sanctity and raised fears that Mr Trump might try to turn the central bank into a White House political instrument, as it came close to becoming under the Nixon administration.

The irony is that Mr. Trump may now face the rate rises that he demanded, and perhaps more than he bargained for.

This AE-P commentary put in an appearance on the Internet site at 7:25 p.m. GMT on their Thursday evening, which was 2:25 p.m. in New York — EDT plus 5 hours.  I thank Roy Stephens for sharing it with us — and another link to it is here.

Jim Rickards: Another Financial Crisis Coming Soon — and This One Will Be Different

Jim Rickards, West Shore Group’s chief global strategist and author of “The Road to Ruin,” discusses the possibility of another financial crisis with Bloomberg’s Vonnie Quinn and David Gura on “Bloomberg Markets.”

This 5:03 minute video interview was posted on the Bloomberg website at 12:36 p.m. EST on Tuesday afternoon — and I plucked it from a piece over at the  I thank Ken Hurt for pointing it out.  It’s definitely worth watching.  It’s partly the ‘same old, same old’…but there’s new stuff as well.

When The Bond Market Goes Bad – Does Bad Mean Good? — Dennis Miller

I’m reading some scary headlines about the bond market crashing.

  • Most Crowded Trade in Bonds is a Powder Keg Ready to Blow
  • Goldman Says U.S. Bondholders Risk a $1.1 Trillion Hit if Rates Spike
  • Bond Traders Suffer Worst Rout in Three Years as Selloff Deepens

It sounds like bad news, but could it be good news for your retirement portfolio?

The pundits are concerned about the changes in interest rates.

This commentary about bonds showed up on Dennis Miller’s website yesterday — and another link to it is here.

U.S. State Department dismisses question from RT, says won’t treat it like other media

During Wednesday’s State Department briefing, spokesman John Kirby accused Russia and the Syrian regime of the bombing of “five hospitals and at least one mobile clinic in Syria.” RT‘s reporter Gayane Chichakyan asked Kirby to specify the details of the alleged incidents, including their location.  Kirby said that he doesn’t know the exact locations.

“I’m not making those accusations, I’m telling you that we’ve seen reports from credible aid organizations,” Kirby said, refusing to clarify any details on the alleged attacks or even give the list of the “many Syrian relief agencies” on which the State Department relied.

He went on with his criticism of the reporter.

“Here’s a good question: Why don’t you ask your Defense Ministry what they are doing? You work for Russia Today [RT], and so why shouldn’t you ask your government the same kind of questions that you are asking me?” Kirby told RT on Wednesday. While Chichakyan pointed out she needed specific details so that RT could inquire about the allegations, Kirby refused to elaborate.

Are there any adults in the State Department these days?  This story appeared on the website at 9:42 p.m. Moscow time on their Wednesday evening, which was 1:42 p.m. in Washington — EDT plus 8 hours.  I thank Roy Stephens for sending it — and another link to it is here.

The serfs have rebelled – Europe next? — Alasdair Macleod

Hayek’s The Road to Serfdom described how personal freedoms are progressively eroded by the state in the name of the common good.

His warning is more associated with totalitarianism and dictatorships, than modern democracies, but the statist attitudes he warned about still apply today and lead to the same loss of personal freedom and increase of state control. In the main, the serfs are patient and tolerant of their masters, but in a democracy, the establishment behind the state risks being challenged. And that has happened twice this year, first with Brexit and now with Trump in America.

We can be certain that the establishment in Britain and America will reinvent itself. Theresa May is not out to change the world, but is adapting to the new realities. Donald Trump is still mostly an unknown quantity, but the initial impression is one of appalling economic ignorance, dressed up as the new Reaganomics. He proposes substantial tax cuts and state-directed infrastructure spending “to make America great again”. But unless tax cuts and infrastructure commitments are made in lock-step with reductions in government spending, which seems extremely unlikely, the outcome will be to stimulate latent price inflation to a surprising degree.

The starting point for “Trumpenomics” could hardly be worse. The level of debt in both the government and private sectors is too high to be sustained already, and from this elevated base it is proposed to print and borrow much more. Payment for this profligacy can only come from credit creation, as banks mobilise and gear up on their excess reserves at the Fed to buy government bonds. The accumulation of latent fiat money since the financial crisis will at last be applied to driving up prices on Main Street, instead of mainly on Wall Street as heretofore. The status quo has concealed enormous economic and monetary distortions, the unwinding of which will have unexpected consequences for prices.

This short essay by Alasdair showed up on the Internet site yesterday sometime — and it’s worth reading.  I thank Peter Holland for sending it along on Thursday evening Denver time — and another link to it is here.

New Détente for the New Cold War:  John Batchelor Interview Stephen F. Cohen

It would seem that new deals and a détente may already being discussed between Trump and Putin by phone.  Speculation in the press is rampant as to topics discussed by the two, at least in the U.K., and Batchelor is treating the speculation according to what happened in the first Cold War when especially dangerous conditions were negotiated away.  And Cohen, with personal observations of events from past Russian/Washington Summits, confirms that this was the process.  As we know Trump’s election campaign indicates he is open to this, and this is very good news, indeed.  (And given that the Clinton campaign did not benefit from the vilification of Putin it suggests that Americans would be open to this as well.)  But the political establishment will resist strenuously. On a personal note I have begun to receive anti-Trump emails from political advocacy groups in Canada – even as it is clear that Canadians will not matter to affairs unfolding in the USA – and with similar events, protests here,  in the U.S., and Europe, the anti-Trump campaign seem worse than during the election. Cohen speculates that Trump will have a rough road to travel without political help in the USA, and “he needs a partner in the Kremlin.”

Elsewhere there are more problems for détente in Ukraine. Batchelor notes that the Right Sector (neo-fascist) Azov Battalion is taking over the police function in Kiev, American elements in Kiev are opposing changes there in the status quo, and the problems in Syria and Iran need to be resolved in a coherent manner. Cohen looks at Ukraine as a humanitarian failure and a foreign policy failure. And it is a problem still for Russia. But Washington’s view remains irrational and Kiev’s policies are supportive for the chaos continuing.  The question is whether Trump addresses these issues on the various NCW (New Cold War) fronts with a view of solving them.

But the second half of the broadcast is a very valuable discussion by Cohen about the disruption that would be caused by a reversal of policies to détente in the US Congress, NATO, the Baltic States, economies of all, and the politics of all global governments – as the real costs of change are assessed. And there would be costs. Cohen thinks that Trump’s embrace of a different strategy, a business-like strategy, will bring diplomacy back to the dysfunctional Washington outlook. (The Wolfowitz Doctrine may be nullified).   But the last four minutes of Cohen’s discussion are priceless for our understanding of what the solutions will be for a workable détente.  I will not paraphrase; this is for the listener to hear from the man who made these statements.

This 40-minute audio interview was posted on the Internet site on Tuesday — and I thank Ken Hurt for sending me the link.  But, as always, the biggest of all THANK YOUs goes to Larry Galearis for above executive summary.  It’s certainly a must listen for any serious student of the New Great Game.  Another link to it is here — and if you don’t have time for it today, it will be in my Saturday column as well.

Vietnam walks away from American-backed TPP trade deal

Vietnam has decided not to join the Trans-Pacific Partnership (TPP), with the trade deal’s future uncertain under incoming U.S. President Donald Trump.

“The United States has announced it is suspending the submission of TPP to the parliament so there are not sufficient conditions for Vietnam to submit its proposal for ratification,” Prime Minister Nguyen Xuan Phuc told the National Assembly, according to Reuters.

The TPP deal is a project of incumbent U.S. President Barack Obama aimed at increasing American exports. The future of the trade deal is highly uncertain in the Republican-dominated Congress and with President-elect Trump calling the project a “disaster“.

“TPP is now in the history dustbin for sure,” Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics, told Politico last week.

This story showed up on the Internet site at 10:15 a.m. Moscow time on their Thursday morning, which was 2:15 a.m. in Washington — EST plus 8 hours.  I thank Roy Stephens for finding it for us — and another link to it is here.

China ‘Marco Polo’ Xi Jinping starts jockeying in post-Obama world — Pepe Escobar

In yet one more spectacular chapter of his running Marco Polo in reverse saga, Chinese President Xi Jinping made a strategic stop in Sardinia, Italy, on his way to the Asia-Pacific Economic Cooperation (APEC) summit in Lima, Peru.

Why beautiful Sardinia? Certainly not for a yacht cruise in the Costa Esmeralda. This is all about, once again, the Chinese-driven New Silk Roads.

Huawei is building its largest European HQ in Sardinia. The Chinese want to buy the port of Cagliari. And fabulous pecorino sardo – serious contender for best sheep cheese on the planet – in powdered form, is already feeding millions of Chinese babies.

As a casual extra bonus “Marco Polo” Xi, on Chinese national TV, exhorted his compatriots to invest in a massive tourist invasion of Sardinia. Now this is what a stimulus package in Europe is all about.

Meanwhile, lame duck President Obama, also on his way to APEC, is in Germany passing the caretaker “leader of the free world” baton to a dear-caught-in-the-headlights Angela Merkel. The headlights go by the name Donald Trump.

This commentary by Pepe put in an appearance on the Internet site at 12:31 p.m. Moscow time on Thursday afternoon, which was 4:31 a.m. in New York — EDT plus 8 hours.  It’s another offering from Roy Stephens — and it’s certainly worth reading.  Another link to it is here.

Three years of stagnant wage growth in Australia. Don’t be surprised if people look for someone to blame

This week came the news that once again a record low has been set for wages growth. The wages price index in the past year rose by just 1.9{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} – a full percentage point below the level of growth that occurred when Australia was in the midst of the global financial crisis. It means that real wages have not grown at all for more than three years.

If you like records being broken, now is the most exciting time to look at economic data. The annual growth of wages in September of 1.9{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} was a new record low, breaking the old mark of 2.1{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} set only three months ago in June. It was the 16th consecutive fall in the growth of annual wages. The last time Australians wages grew faster than they had three months earlier was September 2012.

The new annual record low came off the back of another record low quarterly growth – just 0.4{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} in seasonally adjusted terms.

The private sector has now seen wages grow by less that 0.5{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} in seven consecutive quarters. Prior to this run, there had only been one quarter in the history of the wages price index below that level (during the Great Financial Crisis).

This article appeared on the Internet site just after midnight on Thursday morning GMT, which was just after 7 p.m. on Wednesday evening in New York.  I thank Australian reader J.W. for pointing it out — and another link to this news item is here.

Silver demand seen hitting four-year low, deficit cut by 60 percent: GFMS

Physical silver demand hit a four-year low this year as higher prices and weaker consumer sentiment put people off buying jewelry, coins and bars, GFMS analysts at Thomson Reuters predicted on Thursday.

A drop in mine output is expected to have helped keep the market in a physical deficit, GFMS said, but the shortfall is forecast to shrink by nearly 60 percent.

The silver market is expected to be in an annual physical deficit of 52.2 million ounces in 2016, marking the fourth consecutive year in which (it) has realized an annual physical shortfall,” GFMS analyst Johann Weibe said in the report.

Silver prices have risen by nearly a quarter this year after three years of decline, as expectations for further U.S. interest rate hikes faded and worries over Brexit and the U.S. elections lifted demand for the metal as a haven from risk.

This physical deficit that GFMS speaks of is pure bulls hit, dear reader — and doesn’t actually exist.  There hasn’t been a structural deficit in silver since 2006 according to Ted Butler — and I’ll take his word over this GFMS report any day.  Any report on silver and gold that come from either the CPM Group or GFMS should be taken with a big grain of salt.  CPM Group’s report on silver doesn’t mention the word deficit.  You can’t believe everything you read on the Internet — and this Reuters article, filed from London on Wednesday evening EST — certainly falls into that category, so pick your way through it carefully.  Another link to it is here.

Islamic gold: Vital new dynamic in physical gold market — Jan Skoyles

Islamic Gold – Important New Dynamic In Gold Market

  • Next month, 1.6 billion people will have a new ‘gold investment standard’
  • Gold bullion investments to become accessible to 25{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} of planet
  • Islamic finance market expected to grow to US$5 trillion by 2020
  • Islamic asset classes have all under performed compared to gold
  • In 10 years, gold has risen over 367{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} in US dollar terms and by more in currencies used in Islamic countries
  • Gold bullion products additionally appealing to Islamic banks due to Basel III
  • New Sharia Gold Standard will impact gold price

By the end of 2016, 1.6 billion people will have a new gold investment standard for the first time in modern history. These 1.6 billion people are the Muslims of the world who constitute nearly 25{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} of the 6.9 billion people on the planet. This new ‘gold standard’ is the Sharia gold standard developed as part of a three-party collaboration between AAOIFI, the World Gold Council (WGC) and Amanie Advisors which will be announced Tuesday, December 6th.

This long commentary by Jan appeared on the Internet site on Thursday sometime — and I plucked it from a GATA release.  Another link to it is here.


I know that Hallowe’en is already ancient history, but Franklin Baumgartner Sr. passed around these photos of two pumpkin carvings, along with many others — and rather than forget about them until next year, I thought I’d stick them in today’s column.  People that can turn out work like this are not talented, they are gifted — and there’s a huge difference between the two.  They were born with this skill, they did not learn it.  They only perfected their innate gift as they grew older.  The click to enlarge feature will not help with these photos.161118-10090



Although gold, silver and platinum got smacked by JPMorgan et al on Thursday, both silver and platinum did not hit new lows for this move down, as those were set on Monday.  In gold, the engineered price decline took gold down less than a dollar below its Monday low.  Platinum is still over ten bucks away from its Monday low.

But, those lows in gold and silver were intraday lows — and both these precious metals were actually set new low closing prices yesterday — and there is a difference.  No doubt there was more Managed Money long liquidation, plus adding to short positions in both metals on Thursday…with ‘da boyz’ standing right there to take the other side of those trades for fun, obscene profits — and price management purposes.

Here are the 6-month charts for all four precious metals, plus copper once again, so you can see the lay of the land after yesterday’s COMEX close.161118-6-month-gold


And as I type this paragraph, the London open is less than ten minutes away — and I see that ‘da boyz’ have been busy during the Far East trading session on their Friday.  They, along with their spoofing and algorithms, showed up twice — and gold is down $10.90 the ounce as write this.  Silver has been hit as well, but to a far lesser extent, at least for the moment — and it’s down 7 cents.  Platinum and palladium weren’t spared either, but have been attempting to rally despite the obvious interference.  The former is down 4 bucks, with the latter down 7.

Net HFT gold volume is way up there already at just under 60,000 contracts — and that number in silver is just under 13,000 contracts.  Roll-over volume out of December is nothing special.  The dollar index took off almost the moment that trading began at 6:00 p.m. EDT in New York yesterday evening — and it’s up 34 basis points as London opens.

Today we get the COT Report of all COT Reports — and I’m going to print a copy for posterity!  We’ve certainly had more improvement since cut-off — and the possibility exists that not all the massive volume from last week’s report will have made it into today’s report, so unless we have a massive rally between now and next Tuesday’s cut-off, next week’s report will show even more improvement in the Commercial net short position.

Including today, we’re only eight business days away from First Day Notice for December deliveries for both silver and gold — and as I said earlier this week, we still haven’t seen much roll-over volume out of December so far.  All the large traders have to roll or sell by the close of COMEX trading on Monday the 28th, unless their standing for delivery, of course — and the rest of the traders have to be out by the close of COMEX trading the following day.

And as I post today’s column on the website at 4:05 a.m. EDT, I note that the gold price has been chopping sideways during the first hour of London trading.  But like the other three precious metals, has rallied a bit in the last few minutes — and is down only $8.40 the ounce.  Silver has been crawling lower during the same time period — and is now down only 7 cents — and off its low as well.  Ditto for platinum and palladium, which have been following in silver’s footsteps, with platinum down only 2 dollars now — and palladium down 10.

Net HFT gold volume is just over 71,000 contracts, which is only up 5,000 contracts or so in the last hour.  Silver’s net HFT volume is just over 14,000 contracts — and that isn’t up a lot from an hour ago, either.  Roll-over volume is still pretty light.  The dollar index is chopping mostly sideways, like it has been since 9:25 a.m. China Standard time on their Friday morning — and it’s currently up 30 basis points, which is virtually unchanged from an hour ago.

As for what might happen during the remainder of the Friday session, I haven’t a clue.  It’s obvious that the powers-that-be continue to drop precious metal prices lower — and it wouldn’t surprise me in the slightest if they continued to press their advantage, especially once trading begins in New York this morning.

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


Print Friendly, PDF & Email