Another Engineered Low Price Close For Gold

02 December 2016 — Friday


Gold’s rally attempt at the 6:00 p.m. open in New York on Wednesday evening lasted for less than half an hour.  It was turned lower from there — and the algos were spun and bids pulled around 9:20 a.m. China Standard Time on their Thursday morning.  It rallied back to a bit above unchanged in very early afternoon trading in Shanghai, but got turned lower about ten minutes before London opened.  ‘Da Boyz’ showed up at 9:00 a.m. in New York on the dot — and the low tick was set at, or just before, the London p.m. gold fix.  After that, any and all rallies were capped and sold lower.  The gold price would have closed well into positive territory if allowed to do so, which it obviously wasn’t.

The high and low ticks of the day were recorded by the CME Group as $1,174.60  and $1,160.00 in the February contract.

The gold price was closed in New York yesterday at $1,171.60 spot, down $1.40 from Wednesday.  Net volume was very heavy at just under 221,000 contracts, which wasn’t overly surprising, since JPMorgan et al set a new intraday low [and closing price] for this move down during the COMEX trading session.161202gold

Here’s the 5-minute gold tick chart courtesy of Brad Robertson once again.  For whatever reason, the chart doesn’t go back far enough to show the low tick in Far East trading on their Thursday morning.  But everything else is there, including the new low tick in New York, plus all the volume that mattered during the COMEX trading session.

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.161202-5-minute-gold

The silver price action was similar to gold’s in most ways, but not in all ways.  Firstly, the low tick of the day was around 9:20 a.m. in Shanghai — but it wasn’t a new low tick for this move down.  The other thing, was that the rally that began shortly before the COMEX close had some real legs — and the powers-that-be had to whack it pretty good in the after-hours market to prevent it from breaking away to the upside more than it already had.

The low and high ticks in this precious metal were recorded as $16.30 and $16.675 in the March contract.

Silver finished the Thursday session at $16.48 spot, exactly unchanged from Wednesday’s close — and no doubt that was deliberate.  Net volume was pretty heavy at just over 57,000 contracts.161202silver

And here’s the 5-minute silver tick chart from Brad as well and, fortunately, it includes all of the price action right from the 6:00 p.m. EST open in New York on Wednesday evening, so you can see all the action around the low tick of the day.  It should also be noted that the late-day rally in silver didn’t occur on big volume — and it took even less volume to kill it.

Like the 5-minute gold chart above, 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 as well.161202-5-minute-silver

Platinum followed a similar price pattern as gold and silver up until the COMEX open.  The rally that developed at that point got hit — and a new intraday low price tick was set just before the London p.m. gold fix.  From there it rallied unsteadily into the close, finishing the day at $915 spot, up 5 bucks.161202plati

Palladium was up 5 bucks by noon in Shanghai — and began to crawl lower from there.  JPMorgan et al showed up with their algorithms, pulled their bids — and palladium was down a bit more than 25 dollars in less than an hour.  It rallied sharply from there, but wasn’t allowed to get far — and the price chopped sideways for the rest of the Thursday session.  Palladium closed at $750 spot, down a chunky 18 dollars on the day.  It was down 24 bucks at its engineered low tick.161202plad

The dollar index closed very late on Wednesday afternoon in New York at 101.50 — and chopped sideways once trading began at 6:00 p.m. EST.  That lasted until shortly after 10 a.m. China Standard Time on their Thursday morning — and at the juncture, it began to head south.  With the exception of a couple of short, sharp rallies…one in early London trading, and the other in mid-morning trading in New York…it was pretty much all down hill into the close.  The index finished the day at 100.92 — down 58 basis points from Wednesday.

The Thursday trading session was just more proof that what the currencies are doing doesn’t matter.  Although it was obvious from the price activity in all four precious metals that they wanted to rally, but the paper hangers on the COMEX wouldn’t allow it.161202intraday-gif

Here’s the usual 6-month U.S. dollar index chart — and after yesterday’s performances in both the currencies/precious metals, you understand why I say it’s provided for “entertainment purposes only“.161202-6-month-usd

The gold stocks opened lower, with their respective low ticks coming at, or shortly before, the London p.m. gold fix.  They chopped very quietly higher from there — but once the gold price caught a bid shortly after the COMEX close, they quickly blasted into positive territory until JPMorgan et al appeared to cap the rally and drive the price back into the red.  The gold stocks followed — and the HUI closed lower by 0.44 percent.161202hui

It was virtually the same price path for the silver equities — and after the powers-that-be brutally capped the rally in the after-hours market, the shares followed.  Nick Laird’s Intraday Silver Sentiment/Silver 7 Index closed down 1.02 percent, after being up about the same amount.  Click to enlarge if necessary.161202silver-7

The CME Daily Delivery Report showed that 216 gold and 407 silver contracts were posted for delivery within the COMEX-approved depositories on Monday.  In gold, there were no standouts on the short/issuer side.  The biggest long/stopper was JPMorgan with 79 contracts for its clients, plus 17 contracts for its own account.  In second and third place came HSBC USA and Scotiabank, with 81 and 28 contracts for their respective house accounts.  In silver, the largest short/issuer by far was Canada’s Scotiabank with 350 contracts.  This is the second day in a row they’ve been big issuers.  In distant second and third place were ADM and International F.C. Stone with 28 and 27 contracts issued from their respective client accounts.  There were ten long/stoppers in total, with JPMorgan picking up another 194 contracts for its own account.  Next came Macquarie Futures with 119 contracts for its own account as well.  And in distant third place was Citigroup with 34 contracts for its client account.  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 December fell by 2,573 contracts, leaving 4,259 still around, minus the 216 contracts mentioned in the previous paragraph.  Wednesday’s Daily Delivery Report showed that only 1,569 contracts were posted for delivery today, so that means that another 2,573-1,569=1,004 contract holders on the short/issue side, were let off the delivery hook by those long/stoppers holding the opposite side of the trade.  It’s pretty much a given that these short/issuers had no physical gold backing their positions — and the long/stoppers [JPMorgan et al] did not want whomever owned these contracts, out in the market buying physical gold in the middle of their price management operations.  Silver o.i. in December declined by 271 contracts, leaving 2,482 left open, minus the 407 contracts mentioned in the previous paragraph.  Wednesday’s Daily Delivery Report showed that 322 silver contracts were actually posted for delivery today, so that means that another 322-271=51 silver contracts were added to the December delivery month.

There was a huge withdrawal from GLD yesterday, as an authorized participant took out 438,485 troy ounces.  I would guess that Ted’s “big buyer” had bought enough GLD shares from what John Q. Public was selling recently, that they were forced to redeem them for physical metal to avoid SEC reporting requirements.  And as of 6:06 p.m. EST yesterday evening, there were no reported changes in SLV.  I would suspect, using the past as prologue, that we should be looking at the same scenario in SLV at some point, that just occurred in GLD.  And it certainly wouldn’t be the first time it’s happened, either.

There was no sales report for the first day of December from the U.S. MintBUT they did sneak some more gold sales into November when they thought nobody would be looking.  They added a whopping 20,000 troy ounces of gold eagles, plus another 5,500 one-ounce 24K gold buffaloes.  That’s a lot of gold, dear reader — and I would think that it was Ted’s “big buyer[s]” feasting at the mint’s trough, like they did all month.

November’s revised sales figures are as follows.  They sold 147,500 troy ounces of gold eagles — 29,500 one-ounce 24K gold buffaloes — and 3,061,000 silver eagles.  Looking at Nick Laird’s U.S. Mint charts below, this November just past, was the 4th highest month for gold coin sales in the last five years.

There was no in/out movement of gold at all at the COMEX-approved depositories on the U.S. east coast on Wednesday.

It was a busy day in silver, as 600,502 troy ounces were received — and all of that went into CNT.  There was also 925,103 troy ounces shipped out.  Of that amount, there was 706,789 troy ounces shipped out of HSBC USA, with lesser amount of Scotiabank and Brink’s, Inc.  The link to all this action is here.

It was a bit quieter over at the COMEX-approved gold kilobar depositories in Hong Kong on their Wednesday.  They received only 679 kilobars — and shipped out 2,337 of them.  All of this activity was at Brink’s, Inc. as per usual — and the link to that, in troy ounces, is here.

As I mentioned above, here are two charts from Nick that show gold and silver coin sales from the U.S. Mint, with November’s sales data added in.  The gold chart includes both gold eagle and gold buffalo sales.161202us-mint-gold


It was another quiet day for stories yesterday — so it’s slim pickings once again.


Buying Panic Resumes As Stocks Erase November Closing Dump

Worst initial jobless claims data in 5 months… no problem. After spending the night in the red, following the closing dump yesterday, futures are panic-bid again into the U.S. open, erasing the losses…

How long before we hear “Santa Claus” rally as the reason?

This 1-chart Zero Hedge article appeared on their website at 8:45 a.m. on Thursday morning EDT — and the chart is worth your while.  [“There are no markets anymore, only interventions.“]

Jeff Gundlach Warns Yields and Stocks Have Peaked: “The Trump Rally is Losing Steam

Having predicted the Donald Trump victory, and nailing the upturn in U.S. Treasury yields as well as the concurrent stork market rally, DoubleLine’s Jeffrey Gundlach appears to have once again taken the other side of the trade after riding it for the past 3 weeks, and is now considerably less exuberant on Trumponomics.

Speaking to Reuters, Gundlach said that markets could reverse the recent momentum in equities (something they appear to be doing this very moment), and at the very latest by U.S. President-elect Donald Trump’s Jan. 20, 2017 inauguration.

The new bond king said that the strong U.S. stock market rally, surge in Treasury yields and strength in the U.S. dollar since Trump’s surprising presidential victory more than three weeks ago look to be “losing steam,” Gundlach told Reuters in a telephone interview.

The bar was so low on Trump to the point people were expecting markets will go down 80 percent and global depression – and now this guy is the Wizard of Oz and so expectations are high,” Gundlach said. “There’s no magic here.”

This is the Zero Hedge spin on a brief Reuters article.  It was posted on their Internet site at 1:22 p.m. EST on Thursday afternoon — and another link to it is here.

$4.1 billion pulled from U.S.-based taxable mutual bond funds during week: Lipper

Investors pulled $4.1 billion from U.S.-based taxable-bond mutual funds, the most since June, as a bond selloff forced interest rates higher and rattled investors, Lipper data for the latest week showed on Thursday.

Investors are pulling the trigger and are starting, maybe, the rotation out of bond funds,” said Tom Roseen, head of research services for Thomson Reuters Lipper.

Municipal bond funds continued to be punished as well, losing $2.1 billion to redemptions. Investment-grade corporate bonds posted $1.3 billion in outflows during the seven days through Nov. 30.

Both categories of bonds had been popular this year before rates started rising along with expectations that U.S. President-elect Donald Trump could push policies that stoke inflation. In addition, the Federal Reserve is widely expected to raise interest rates later this month.

Any bond is a ‘sell’ now as far as I’m concerned.  This Reuters news item, filed from New York, was posted on their Internet site at 7:44 a.m. on Thursday morning EST — and I found it on Doug Noland’s website.  Another link to it is here.

Bond Bloodbath Leaves Entire Treasury Curve Underwater For 2016

The collapse of the U.S. Treasury market in the last two days has sent the entire curve (from 2Y to 30Y) higher in yield on the year….

The belly is underperforming with 5Y and 7Y worst (+20 and 21bps respectively) with 2Y ‘best’ – yield up ‘only’ 11bps in 2016…

And U.S. bond markets are drastically underperforming the rest of the developed world…

This 2-chart Zero Hedge item showed up on their Internet site at 12:49 p.m. EST yesterday afternoon — and another link to it is hereThe charts are worth a quick look.

Straight Talk About Pension Bail Outs — Dennis Miller

Many state and local public pensions are on life support. Public officials are negotiating with unions, taxpayers, pensioners, the courts and electorate to come up with a solution. Everybody wants a bail out at the expense of others.

The Brookings Institute recent study indicates a huge problem:

As of 2014, state and local governments sponsored nearly 4,000 pension plans that covered almost 20 million retirees, employees, and former employees who have not yet claimed benefits.

… Many states and municipalities are struggling to fund defined benefit pension plans for their employees. … (I)n order to improve their pension status, almost every state implemented some combination of lower benefit accruals and higher employer or employee contributions.

But underfunding problems have not disappeared, and they are likely to become more difficult in the future, putting pressure on other state and local spending programs and taxes.

This commentary by Dennis put in an appearance on his website yesterday — and another link to it is here.

Hollande Announces He Will Not Run For Re-election as French President

With almost 90{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} of the nation disapproving of him, it hardly a surprise that French President Hollande just told the nation that “for the good of his country” he will not run for Presidency in 2017 saying he was “conscious of the risks” a candidacy would have caused.

The unprecedented decision was driven by his historically low popularity ratings.

Power and the exercise of power have not made lose my lucidity. And today, I am conscious of the risks that would create my candidacy for the majority,” he said in a solemn televised address on Thursday evening. “Therefore I have decided not to run for president for president.”

He has had some of the worst approval ratings for a president in modern French history.

Polls so far indicated that Mr. Hollande, who has struggled to significantly reduce unemployment and whose term saw some of the worst terrorist attacks on French soil, would not make it past the first round of the elections, which will be held in April.

This Zero Hedge piece was ripped from a Bloomberg news item yesterday — and it was posted on the ZH website at 2:24 p.m. EST.  Another link to it is here.

Europe’s long weekend presents a triple threat

Europe is in for a tense long weekend. In the space of 48 hours starting on Sunday, Italy’s premier will face a make-or-break referendum, Austria could elect a far-right president, and Greek debt talks will reach a head. All three events have the power to revive the centrifugal forces that could send Europe spinning out of control.

The fortunes of Italy and Austria are both in the hands of voters. Recent polls suggest Italian Prime Minister Matteo Renzi’s proposal to cut the powers of the country’s Senate is likely to fail. Austria’s presidential election on the same day is a re-run of the May vote that the far-right Freedom Party candidate, Norbert Hofer, lost by just 31,000 votes.

Then there’s Greece. Finance ministers from the euro zone will gather on Monday to review how the country has performed against a set of exacting reform targets. Creditors are at loggerheads over demands that Greece deliver a sustained budget surplus of 3.5 percent of GDP, before interest payments. The International Monetary Fund and the Greek government think this is unrealistic. German Finance Minister Wolfgang Schaeuble, among others, disagrees.

This Reuters news item, filed from London, was posted on their Internet site at 3:57 a.m. EST on Thursday morning — and it comes to us courtesy of Richard Saler.  Another link to it is here.

ECB to extend asset buys but may signal eventual end

The ECB will extend its bond purchases beyond March and consider sending a formal signal after its policy meeting next Thursday that the program will eventually end, senior sources with direct knowledge of discussions said.

Even some skeptics of more stimulus on the bank’s Governing Council have accepted that an extension beyond the current expiry date of March is inevitable given weak underlying inflation and heightened political risk, they said.

They are still wrestling with the question of how to structure that extension, however, according to multiple senior sources at the European Central Bank and national central banks.

Much of the preparatory staff work has focused on a six-month extension at a steady pace of 80 billion euros per month, an option favored by many as growth is sluggish, inflation lacks momentum and political risk from key elections keeps the chances of market volatility high, three sources said.

But some have indicated they would favor an extension at lower volumes, for example nine months at €60 billion a month, fearing that a straight extension could make the program appear open-ended, two of the sources said.

This very interesting Reuters story, co-filed from Berlin and Frankfurt, appeared on their Internet site at 11:33 a.m. on Thursday morning EST — and I plucked it from a Zero Hedge article.  Another link to it is here.

Russian-rebel talks resume as Erdogan backs down on Assad

Conflicting statements from Turkey’s president about the country’s ill-fated Syria policy have apparently disrupted secret talks between Syrian opposition rebels and Russia that are being brokered by his own government. The Financial Times reported today that negotiations over an Aleppo cease-fire were derailed after Turkish President Recep Tayyip Erdogan said Turkey’s sole purpose in sending its troops to Syria were to overthrow the country’s President Bashar al-Assad.

The talks apparently resumed only after Erdogan and Putin spoke on the phone on Nov. 30. On the same day, Erdogan publicly declared that the target of the Turkish-led Operation Euphrates Shield in northern Syria was “not a particular country or individual” but “solely terrorist organizations.

The controversy unfolded just as Russia’s Foreign Minister Sergey Lavrov traveled to the resort city of Alanya on Nov. 30 to talk about Syria and other bilateral matters with his Turkish counterpart Mevlut Cavusoglu. At a news conference following their talks today, Cavusoglu said that he and Lavrov had agreed on a cease-fire in Aleppo but that Turkey’s stance on Assad remained unchanged.

In an interesting aside, U.S. president-elect Donald Trump’s oldest son, Donald Jr., was in the neighboring resort of Antalya around the same time as Lavrov. His secret visit, first reported by the independent Turkish online news portal Diken, was purportedly to hunt wild goats in the area at the invitation of an unidentified Turkish businessman.

This interesting story showed up on the Internet site yesterday — and I thank Roy Stephens for pointing it out.  Another link to this news item is here.

Junk Rating for South Africa Might Be Hours Away and Last Years

South Africa might be just hours away from losing its investment-grade at S&P Global Ratings — a relegation that could take years to undo.

With a credit assessment due on Friday, the country’s foreign-currency debt is at risk of being rated junk by S&P for the first time in more than 16 years. Only six of 20 countries reduced below investment grade by S&P over the last three decades have regained it, and that took from 13 months to more than 11 years, data compiled by Bloomberg show. Seven of 12 economists surveyed by Bloomberg last month said the nation’s foreign-currency rating will be downgraded to junk on Friday, while three foresee it happening in June.

Political turmoil in Africa’s most-industrialized economy, including now-dropped fraud charges against Finance Minister Pravin Gordhan, has overshadowed efforts to boost investor and business confidence. The slowest gross domestic product growth this year since a 2009 recession will complicate Gordhan’s pledge to narrow the budget deficit and to limit government debt, while promised structural reforms have been hampered by infighting in the ruling African National Congress and government departments.

If South Africa does get a downgrade, I think we are looking at at least three to five years before it could possibly get upgraded again,” Per Hammarlund, chief emerging-market strategist at SEB SA in Stockholm, said by phone. “Given the way politics are moving now, it seems as if the political paralysis will continue and that doesn’t bode well for economic reforms.”

This Bloomberg news item found a home on their Internet site at 5:00 p.m. EST yesterday afternoon — and it’s another item I found on Doug Noland’s website early on Thursday evening Denver time.  Another link to it is here.

China tightens gold import quotas to curb dollar outflow

China has curbed gold imports in the wake of government attempts to clamp down on capital leaving the country, according to traders and bankers.

Some banks with licenses have recently had difficulty obtaining approval to import gold, they said — a move tied to China’s attempts to stop a weakening renminbi by tightening outflows of dollars, the banks added.

The hit to gold imports comes as China tightens restrictions on overseas deals by state-owned companies in an effort to limit capital outflows that has seen the renminbi fall to its lowest against the dollar in eight years.

The above three paragraphs are all that are posted in the clear from this Financial Times story from yesterday.  The rest is hidden behind a subscription wall.  I found it embedded in a GATA release — and the link to the story on the FT website is here.

Major gold price divergence between Shanghai and London — Lawrie Williams

Few seem to have commented on what appears to be an increasing trend towards large anomalies appearing between the Shanghai and London gold benchmark prices.  Up until the beginning of November prices were pretty much in sync give or take a few dollars – a variation based on trading activity during the day, and, in some cases due to a difference between the gold tenor quality required under the two systems.  The SGE specification is 99.99{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} gold content or better, while London works to LBMA Good Delivery specifications where the requirement is only 99.5{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e}.  But on one ounce of gold this should only make for a maximum difference in price of around $5-6 at a $1,200 gold price.

But recently – as the table below comparing SGE and LBMA (London) PM price benchmarks for the past month makes very obvious…the price difference – virtually always in favour of the SGE benchmark since early in the month —  has been consistently $10-20 or more (often $20-30).

As we pointed out here yesterday a part of the reasoning behind the higher SGE benchmark price levels is something of a squeeze on Chinese gold supply which is local market specific – particularly now that gold traders and fabricators may be looking to build stocks ahead of anticipated additional demand from the Chinese New Year holiday, and a reported reduction in gold import quotas by the Chinese Government to curb capital outflows. But part may also be due to Shanghai looking to establish itself as the true gold price setting exchange and thus usurping the still dominant position of COMEX and the LBMA.  As China is the world’s biggest physical gold market, while COMEX and London are largely paper markets, it is probably only a matter of time before this comes to pass but for the moment the Western markets look to still be calling the tune as far as the accepted global gold price is concerned despite some hugely anomalous movements from time to time which many observers put down to manipulation.  The latest such was only today when a rise in U.S. jobless claims, which might normally be considered gold positive, saw the price marked down sharply after an initial small rise.

This commentary by Lawrie put in an appearance on the Sharps Pixley website yesterday sometime — and it’s worth reading.  Another link to it is here.

Thief gets away with $1.6 million bucket of gold flakes

Police are looking for a thief who managed to carry an 86 lb (36kg) bucket of gold flakes worth $1.6m (£1.2m) off a truck in New York.

Surveillance video showed the theft happened in just 20 seconds while the armoured truck was briefly unattended.

The man struggled to carry the gold, taking an hour to lug his loot on a usually 10-minute walk, footage showed.

Authorities believe the man is hiding out in Florida’s Orlando or Miami area, but he is still at large.

This interesting news item appeared on the Internet site on Wednesday — and I thank Swedish reader Patrick Ekdahl for bringing it to our attention.  Another link to it is here.


Here, once again, are two more of the finalists for the 2016 Comedy Wildlife Photography AwardsClick to enlarge should only help with the second photo.161202photo-1



There is no more dangerous menace to civilization that a government of incompetent, corrupt, or vile men.  The worst evils which mankind ever had to endure were inflicted by bad governments.” – Ludwig von Mises

Platinum was the only one of the four precious metals that was allowed to close in positive territory yesterday.  Even a cursory examination of the price charts of the other three shows that they would all close materially higher if the short buyers/long sellers of last resort hadn’t turned up at several key moments during the Thursday trading session.

This is especially true considering the fact that the U.S. dollar is down 100 basis points in the preceding thirty-six hours…as of midnight EST on Thursday.  ‘Da boyz’ have had their hands full as we’ve rolled over into December.

Here are the 6-month charts for all four precious metals…plus copper.  Note the news low close in gold — and the new intraday low in platinum.161202-6-month-gold


And as I type this paragraph, the London open is less than ten minutes away — and I see that gold, silver and platinum rallied until around 9:20 a.m. China standard time on their Friday morning, which was the same time that ‘da boyz’ stepped into the precious metal markets on Thursday as well.  Gold is now up only $2.60 an ounce, silver is up only 4 cents — and they now have platinum back to unchanged on the day.  Palladium is now down 3 bucks after spending almost the entire Far East trading session in positive territory.

Net HFT gold volume is just over 28,000 contracts, with very little roll-over/switching activity.  That number in silver is just under 7,400 contracts, with just a handful of roll-over volume.

The dollar index continued to chop lower in morning trading in the Far East — and hit its currently low tick at precisely noon China Standard Time.  It’s now rallying a bit — but is still down 10 basis points as London opens.  I suspect that any dollar index strength is being used as an excuse to lean on precious metal prices.

So where to from here — and is there much more of this to go?  Beats me, but here’s Ted’s quote from Thursday’s column as a refresher:  “There’s no question that the market structure is still improving, but the big question is how much more to go?  I still think there’s not much more to go, but that will only be known in hindsight, after the price bottom has been recorded.  In the interim, new prices lows can be made.  Also, even if we are at or close to the bottom (as I believe), there is no way of determining in advance how long before the rally begins.  Given all the facts and what’s transpiring in other markets, it wouldn’t seem the wait for a rally in gold and silver would be terribly long.  More important, of course, is the nature and extent of the coming rally and the current low level of risk in holding silver positions.

Today, at 8:30 a.m. EST, we get the latest job numbers.  Of course I always expect that JPMorgan et al will be there at that precise time, or seconds before, to ‘guide’ the precious metals, particularly gold and silver, in the desired direction.  I have no idea which direction that might be at this juncture, but you should be aware that this event is upon us.

Of course the other event that’s upon us is the latest and greatest Commitment of Traders Report for positions held at the close of COMEX trading on Tuesday, November 29.  That report will include the price hijinks over the U.S. Thanksgiving holiday late last week.

Ted said in his mid-week commentary yesterday that he’s hoping for improvements of 30,000 contracts in silver — and 5,000 contracts in silver.  He’s also hopeful it will be more, much more.  Aren’t we all.

Whatever the numbers are, I’ll have them for you in Saturday’s missive.

And as I post today’s column on the website at 4:00 a.m. EST, I see that gold has been inching higher in the first hour of London trading — and is up $4.10 an ounce — and silver is up 7 cents.  Platinum is up a dollar, but palladium is now down by 5 bucks.

Net HFT gold volume is up to just under 33,000 contracts — and that number in silver is 8,600 contracts.  The dollar index hasn’t done much in the last hour — and is down 7 basis points.

There’s not much happening at the moment, but it’s a given that things will be different by the time I check the charts about eight hours from now.

That’s all I have for today.  I hope you have a good weekend — and I’ll see you here on Saturday.



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