Russia Adds 1 Million Ounces of Gold to Their Reserves in November

21 December 2016 — Wednesday


The gold price chopped sideways once trading began at 6:00 p.m. on Monday evening in New York.  Then shortly before noon China Standard Time on their Tuesday ‘da boyz’ began to lean on the price — and the low tick of the day was set at the London p.m. gold fix.  It was not a new low for this move down.  From there it didn’t do much until 11:30 a.m. EST — and the rally that began at that juncture, ended a few minutes after 1 p.m. in New York — and the price didn’t do much after that.

The high and low ticks were reported as $1,141.70 and $1,127.30 in the February contract.

Gold finished the Tuesday session in New York at $1,132.10 spot, down $5.60 on the day.  Net volume was fairly decent at just under 128,000 contracts.

Here’s the 5-minute gold tick chart from Brad Robertson.  There was noticeable volume in Far East trading, along with the odd volume spike mixed in as well.  The volume got far more serious starting around noon in London, which is 05:00 Denver time on the chart below — and by shortly before 2 p.m. in New York…12:00 MST on the chart…volume was back to background for the rest of the day.

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‘ feature is a must.

But there should be no doubt in anyone’s mind that JPMorgan et al were after silver.  Like gold, they began to lean on the price around noon in Shanghai, with the first low spike coming at 3 p.m. China Standard Time.  It rallied a dime from there, before trading mostly flat into the noon silver fix in London — and that point the powers-that-be really got serious.  The absolute low tick was set at 9:30 a.m. in New York.  It rallied a bit from there before trading sideways until 11:30 a.m. EST.  Then, also like gold, it began to rally — and that lasted until a few minutes before the 1:30 p.m. COMEX close.  It traded almost rule flat from there, but did add another nickel in the final hour or so of trading, closing on its high tick of the day.

The low and high in silver were reported by the CME Group as $15.675 and $16.165 in the March contract.

Silver closed yesterday at $16.07 spot, up 12 cents from Monday…which I though rather amazing.  Net volume was pretty heavy at just over 54,000 contracts.

And here’s the New York Spot Silver [Bid] chart, so you can see the double bottom placed between 9 and 9:30 a.m. in New York.

And here’s the 5-minute silver tick chart courtesy of Brad once again.  In most respects, the volume pattern in silver was very similar to what it was in gold, so I shan’t add any further comment except to say that two silver charts above are for the spot month — and Brad’s chart below is for the March contract — and there are noticeable differences, especially at the low tick in New York.

Like the 5-minute tick gold 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‘ feature is a must here as well.

It was more or less the same for platinum as it was for gold.  Platinum was up 6 bucks by around noon in Shanghai, but it was quietly sold lower from there, with the real damage coming starting around 1 p.m. Zurich time, which was the noon silver fix in London.  The low tick was printed at, or shortly after, the London p.m. gold fix and, also like both gold and silver, platinum’s subsequent rally was capped at, or shortly after, 1 p.m. EST.  Platinum finished the day more or less on its high tick at $921 spot, up 5 dollars from Monday’s close.  But at its $899 low tick, it was down 15 bucks.

The price action in palladium was a sort of mini version of what happened in the other three precious metals.  It was almost comical to watch ‘da boyz’ bounce the price off its $662 low tick multiple times during morning trading in New York, as nobody was prepared to sell a long position, or go short at that price, so that’s as low as they could get it.  The price rallied about ten bucks off its low starting just before noon EST, but JPMorgan et al took more than half of that away by the close. Palladium finished the day at another new low for this move down at $665 spot, down another 17 bucks.

The dollar index closed very late on Monday afternoon in New York at 103.13 — and drifted a bit lower until precisely noon in Shanghai — and then away it went to the upside.  The 103.65 high tick was set around 12:40 p.m. GMT in London — and from there it sank down to 103.28 by a minute or so after 1 p.m. in New York.  It gained back about 10 basis points of that decline in very short order — and then chopped sideways for the remainder of the Tuesday session.  The dollar index closed at 103.25 — and up 12 basis points on the day.

Without doubt you’re looking at another manufactured dollar index rally that allowed ‘da boyz’ to do the dirty in the precious metal market yesterday.  We’ve seen this all before.

And here’s the 6-month U.S. dollar index chart — and it’s just as rigged as every other chart you care to look at these days.

The gold stocks gapped down about 4 percent at the open of the equity markets in New York on Tuesday morning.  But from there they chopped higher almost without a break — and made it back into positive territory to stay by shortly after 2 p.m. EST.  The HUI closed higher by 0.44 percent.  Considering the fact that gold closed down almost 6 bucks, there was obviously some serious money doing some bottom fishing yesterday.

The silver equities were down about 4 percent at the open yesterday as well.  The chopped higher too, with most of the gains coming by about 2:25 p.m. EST.  From there they traded sideways into the close.  Nick Lairds’ Intraday Silver Sentiment Index closed down 1.17 percent.  Click to enlarge if necessary.

I was just as surprised at this negative close in the silver shares, as I was the positive close in the gold ones.

The CME Daily Delivery Report showed that zero gold and 2 silver contracts were posted for delivery within the COMEX-approved depositories on Thursday.  Canada’s Scotiabank picked up both silver contracts.

The CME Preliminary Report for the Tuesday trading session showed that gold open interest in December fell by 20 contracts, leaving 712 left.  Monday’s Daily Delivery Report showed that only 2 gold contracts were actually posted for delivery today, so that means that 20-2=18 short/issuers in gold were let off the December delivery hook.  Silver o.i. in December rose by 5 contracts, minus the 2 mentioned in the previous paragraph.  Monday’s Daily Delivery Report showed that zero silver contracts were posted for delivery today, so that means the obvious…that 5 silver contracts were added to the December delivery month.

There were no reported changes in GLD yesterday.  But there was another withdrawal/exchange for physical in SLV yesterday, as an authorized participant took out 758,557 troy ounces.  I would suspect that JPMorgan owns that silver now.

There was decent movement in gold over at the COMEX-approved depositories on the U.S. east coast on Monday.  They reported receiving 24,605 troy ounces — and shipped out 70,474.492 troy ounces.  All of the ‘in’ activity was at Canada’s Scotiabank.  Of the ‘out’ activity, there was 54,399.492 troy ounces/1,692 kilobars [SGE kilobar weight] shipped out of HSBC USA — and the remaining 16,075.000 troy ounces/500 kilobars [U.K./U.S. kilobar weight] were shipped out of Canada’s Scotiabank.  The link to that action is here.

The only activity in silver was 538,454 troy ounces that were received at Brink’s, Inc.  The link to that is here.

It was another very busy day over at the COMEX-approved gold kilobar depositories in Hong Kong on their Monday.  They reported receiving 11,535 kilobars — and shipped out another 2,811 of them.  All of that action was at Brink’s, Inc. as per usual — and the link to that, in troy ounces, is here.

Since yesterday was the 20th of the month — and it fell on a weekday — the good folks over at The Central Bank of the Russian Federation updated their website with their November data.  It showed that they added 1 million troy ounces to their gold reserves during that month.  They’ve added 2.3 million troy ounces to their reserves just in the last two months alone.  Here’s Nick’s most excellent chart showing that.  Click to enlarge.

I have very few stories for you today, so that makes the final edit very simple.


Caterpillar Posts Record 48 Consecutive Months Of Declining Retail Sales

While Caterpillar’s CEO may have resigned recently, admitting that he misjudged the business strategy, and even the company issued a press release cautioning the market may have gotten ahead of itself, CAT  stock does not appear to be bothered, soaring by 12{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} since the Trump presidential victory, and continues to trade near 2016 highs on hopes an infrastructure push would make excavators great again. For now, however, the woes at the heavy industrial manufacturer continue, with yet another month of declining global sales, the company’s 48th in a row.

To be sure, there was a glimmer of hope for CAT coming out of Asia, where retail sales continued the rebound after posting positive gains in the August, September, and October, rising 12{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} last month, the biggest annual gain since September 2012, however the November gains moderated fractionally to 11{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e}. This however was offset by continuing – and sharper – declines in North America, the EAME and Latin America regions, which declined by 19{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e}, 25{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e}, and 32{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e}, worse than last month’s declines of 16{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e}, 14{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} and 24{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e}, respectively.

But it was on a global blended basis, that the ongoing problems facing CAT refuse to go away, and where we can see that the company has not reported a single monthly uptick in sales for record 48 consecutive months, or 4 straight years, a period which is now 2.5x longer than the far more acute 19 month drop observed during the post-financial crisis period.

Meanwhile, the stock continues to levitate higher, unanchored by any fundamental considerations.

This news item showed up on the Zero Hedge website at 9:55 a.m. on Tuesday morning EST — and another link to it is here.

Ex-Deutsche Bank trader accused of market manipulation in Russia

Russia’s central bank said on Tuesday it had found evidence of “large scale” market manipulation by Deutsche Banks former head of Russian equity trading, accusing him of doing R300 billion ($4.8 billion) of illicit trades in the names of his relatives.

The case is another blow for Deutsche’s already battered reputation in Russia, where it has shut down most of its investment banking operations after being hit by a separate trading scandal last year.

Yuri Khilov, who left Deutsche in 2015, earned about R255 million of profit for himself and his family from 2013 to 2015, the Russian central bank said in a statement today. It said complaints had been filed with local law enforcement agencies.

The central bank accused Mr. Khilov of opening accounts in his relatives’ names, then booking trades on behalf of Deutsche’s London branch that allowed them to profit within minutes by buying or selling stocks of Russia’s most liquid companies, including Gazprom, Sberbank, Rosneft, Lukoil, and Norilsk Nickel, in the opposite direction.

The above four paragraphs are all that are posted in the clear in this story that showed up in the Financial Times of London yesterday sometime.  I found them embedded in a GATA release.  A link to the entire FT story is here, but it’s behind a subscription wall.

A few initial short thoughts on the murder of the Russian Ambassador to Ankara — The Saker

Okay, so tonight we have the name of the assassin, it is Mevlut Mert Aydintas, a 22 year old policeman who had been recently fired following the anti-Gulenist crackdown of Erdogan against the forces which had attempted to overthrow him recently.

Alas, both the Turks and the Russians have a long tradition of secrecy and we might never find out who, if anybody, really was behind Mevlut Mert Aydintas.

What this means is one of two things:

Version 1: there was nobody in charge of security at this exhibition

Version 2: the room where this murder happened was considered ‘safe/sterile’ because it was inside an outer security perimeter which we don’t see in this video.

I find version 2 far more likely.  That would also explain why and how Mevlut Mert Aydintas so easily got in: he simply flashed his police ID and was let through.

This longish commentary appeared on the Internet site on Tuesday — and is certainly worth reading, especially if you’re a serious student of the New Great Game.  I thank Larry Galearis for finding it for us — and another link to it is here.

Moscow Declaration: Russia, Turkey and Iran Join Together to End Syria’s Tragedy

December 20 will go down in history as a memorable day to turn the tide of Syria’s conflict. Russia, Turkey and Iran adopted a declaration on the immediate steps to promote the settlement of the Syria’s crisis.

The three countries agreed to take on the role of guarantors to facilitate the process preserving the territorial integrity of Syria and spreading the cessation of hostilities to all parts of the country. Other states are welcome to join. The declaration is just a start, the efforts by the three parties will continue. The document was signed by the three countries’ foreign and defense chiefs at the December 20 meeting in Moscow.

Russia, Iran and Turkey will fight together Islamic State, Jabhat al-Nusra (Jabhat Fatah al-Sham) and other extremist groups. The parties are ready to mediate a deal between the Syrian government and opposition. They considered the proposal of Russian President to convene a meeting between the Syrian regime and opposition groups in the Kazakh capital of Astana, taking the crisis management process into their hands to achieve real results – something international efforts in other formats have failed to do.

This news story appeared on the Internet site in the wee hours of Wednesday morning — and I thank Roy Stephens for sharing it with us.  Another link to it is here.

Japan’s Central Bank Keeps Policy Unchanged, Upgrades Economic Outlook

The Bank of Japan closed a tumultuous year for monetary policy with an upgrade to its assessment of the economy while keeping its yield-curve and asset-purchase programs unchanged.

Following the board’s first policy meeting since Donald Trump’s election victory, the central bank forecast a moderate recovery trend to continue amid a pickup in exports, better business sentiment and resilience in private consumption. However, inflation expectations remain weak and risks to the outlook abound, ranging from developments in the Chinese and U.S. economies to Brexit and geopolitical uncertainties.

Most analysts had already adopted the view that the BOJ would stand pat in coming months with its targets for short- and long-term interest rates, even before Trump’s election victory sent the yen tumbling, easing any pressure for additional action to stoke inflation. After the shock of negative rates in January, a comprehensive policy review midyear and new direction since September, a majority of economists surveyed by Bloomberg don’t expect any additional easing before Governor Haruhiko Kuroda steps down in 2018.

“In the spirit of the holiday season Kuroda delivered on cue with no surprises,” said Stephen Innes, a Singapore-based senior trader at foreign exchange firm Oanda Corp. While the upgrade of the economic assessment may further damp domestic easing expectations, “Trumpflation” is likely to see the dollar strengthen further against the yen, said Innes.

This whistling-past-the-graveyard outlook appeared on the Bloomberg website at 7:54 a.m. Denver time on Monday morning — and was subsequently updated yesterday morning at 12:32 a.m. MST.  It was posted on the Zero Hedge website — and comes to us courtesy of Brad Robertson.  Another link to it is here.

Senators Condemn CFTC For Failure to Finish Rule to Curb Excessive Speculation in Commodities

Senator Dianne Feinstein, Sherrod Brown and Maria Cantwell criticized the Commodity Futures Trading Commission for failing to complete a long-delayed rule to curb the number of futures contracts a trader can hold on certain commodities, including oil, natural gas, and gold. The CFTC in 2013 revised its proposal to crack down on excessive speculation in a group of 28 commodities, but the agency has yet to issue a final rule. On Dec. 5, CFTC Chairman Timothy Massad punted again, reproposing the rule despite assurances it would be completed this year.
We are disturbed by the CFTC’s action to delay this rule-making and your inability to guide the rule to completion in the two and a half years of your tenure,” the Senators wrote in a letter to Massad. “Instead of working to achieve a balanced rule based on years of consideration and comments since the November 2013 reproposal of the rule, you have simply kicked the issue into the future and created the uncertainty that you stated you were trying to avoid.

In March, the Senators urged the CFTC to move quickly to finish the final position limits rule. They expressed concerns over continued delays or a weaker the rule. When the CFTC approved the supplemental position limits proposal in May, Massad said he looked forward to completing the rule by the end of the year.

Now, in December, we see that our concerns were well founded — the rule has been unnecessarily delayed and is now on track to be weaker,” the Senators wrote.

The Senators also criticized the CFTC for stalling or weakening its rules related to oversight of derivatives traders dealing in multi-billion dollar swaps, capital and liquidity for swap dealers, margin requirements for uncleared swaps, and automated trading.

This news item showed up on the website on Monday sometime — and I thank Ted Butler for pointing it out.  Another link to it is here.

India’s gold imports shrink 30.5{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} to $15.7 billion in April-November period

Gold imports witnessed a fall of 30.5 percent to US$15.74 billion in April-November of the current fiscal year, which is expected to keep a lid on the current account deficit.

Total imports of the precious metal in the corresponding period of 2015-16 stood at US$22.64 billion.

Softening prices of the precious metal globally as well as locally are seen to be at work.

However, gold imports grew for the second straight month in November by rising 23.24 percent to US$4.36 billion, according to the commerce ministry data.

This gold-related new item, filed from New Delhi, put in an appearance on The Economic Times of India website at 7:58 p.m. IST on their Monday evening — and I thank Kathmandu reader Nitin Agrawal for bringing it to our attention.  Another link to it is here.

Yuan Collapse Sends China Physical Gold Premium Soaring to 3-Year Highs

“Worse than Lehman…”

The premium that mainland Chinese investors are willing to pay for physical gold has surged to over $40 as the Chinese government seeks to curb illegal capital outflows. Following slowing in Tier 1 home price growth, and a collapse in the China bond market, it appears gold panic-buying is accelerating…

This premium is higher than during the Lehman crisis and as bad as the peak of the Chinese banking system liquidity crisis in 2013 as onshore investors appear to prefer the precious metal to hedge against ongoing Yuan devaluation…

But it’s not just precious metals that are bid as alternatives to their paper money, Bitcoin is bid to its highest since Jan 2014…

This 3-chart Zero Hedge article was posted on their website at 3:30 p.m. EST on Tuesday — and I thank ‘David in California’ for passing it around yesterday.  Another link to it is here.

John Hathaway vs. JP Morgan et al

In an e-mail I received from John yesterday evening, he passed around that article by Doug Pollitt that I posted in my Friday column.  It was entitled “They don’t call it the fix for nothing“.

In his comments, John had this to say…

The attached note by Doug Pollitt discusses precious metals price rigging and related legal actions.   As Doug notes, the gold mining industry has generated sub par economic returns over the past five years, but why should those returns have been so far inferior to those generated by the extractive industry in general?  For an answer, one has to at the very least consider the activities of bullion banks (through 2013) and their surrogates/ successors  since then.”

“Price rigging, now well documented, means at the very least  that mining companies have consistently received prices engineered lower by collusive buying practices, a practice that in turn depressed returns on capital.  Rigging quite possibly also capped  gold price upside during potential breakouts. The April 2016 settlement between Deutsche Bank and plaintiff lawyers was finalized in September.  That settlement provided for disclosure of related information that has only very recently come to light,  including chat room transcripts (excerpted in Doug’s note) which clearly portray collusive behavior.”

“These excerpted chats are enough to make your blood boil, whether you are an investor or a producer.  Many more are contained in the amended complaint which I will provide upon request.  It seems to me that all precious metals investors have strong interest in seeing that this legal action advances.  In my opinion, this can be accomplished by making investors who have been damaged by price rigging aware of the litigation, encouraging those who have been adversely affected to join the class, and finally by advocating a less passive stance by mining company managements on the matter.” — Best regards…John

Why invest in the monetary metals and their miners if they won’t defend themselves?

The more it exposes and documents manipulation of the monetary metals markets by governments, central banks, and their agents in the financial industry, the more GATA is resented by those in the monetary metals industry who are merely touters of mining shares.

That’s because GATA tells people what they are up against when they invest in the monetary metals — indeed, when they aspire to free and transparent markets and to liberty itself. So while there was a victory for GATA in this month’s disgorgement in federal court in New York of Deutsche Bank’s electronic records of market rigging by its traders and the traders of other banks, on the whole the revelations may have been a defeat for the mining industry.

Toronto market analyst and broker Michael Ballanger wrote: “Until the regulators can finally put an end to this horrific process whereby the bullion banks have a total carte blanche to issue as many [futures] contracts as they desire under the guise of ‘hedging,’ prospective gold investors are simply going to say, ‘Nope, not playing.’ The intervention, collusion, and bank-coordinated gang attacks such as we are now witnessing via the Deutsche Bank evidence coming out is actually having a negative effect on sentiment, because as much as the revelations are creating transparency, they are also scaring prospective investors. The prevailing wisdom emanating from the trading desks is: ‘Wow! If they can get away with that, why would anyone put money into the gold and silver markets?

The Deutsche Bank disgorgement has incriminated not just Deutsche Bank itself but all the recent participants of the daily London gold and silver price “fixings” — HSBC, Bank of Nova Scotia, UBS, Barclays, and Societe Generale. But apparently none of them is reported to be under investigation by government law-enforcement agencies for rigging the gold and silver markets. Indeed, three years ago the U.S. Commodity Futures Trading Commission announced that it had closed a five-year investigation of the silver market without finding any cause for an enforcement action.

While the CFTC has subpoena power and dozens of investigators, it apparently was unable to discover what the anti-trust class-action lawsuit in New York did.

This must read commentary by Chris was posted on the Internet site at 10:25 p.m. EST last night — and another link to it is here.


Here are two more winners in National Geographic’s 2016 Nature Photographer of the Year contest.  The Click to Enlarge feature may or may not help.  The second photo is a close-in head shot of an Atlantic puffin.


We presently observe the third most overvalued extreme in history based on the most reliable valuation measures we identify, in the presence of 1) the most extreme “overvalued, overbought, overbullish” syndrome we identify, and 2) explicitly deteriorating market internals. Based on a composite of measures best correlated with actual subsequent market returns across history, other two competing extremes were 1929 and 2000.

After more than three decades as a professional investor, it’s become clear that when investors are euphoric, they are incapable of recognizing euphoria itself. Presently, we hear inexplicable assertions that somehow euphoria hasn’t taken hold. Yet in addition to the third greatest valuation extreme in history for the market, the single greatest valuation extreme for the median stock, and expectations for economic growth that are inconsistent with basic arithmetic, both the 4-week average of advisory bullishness and the bull-bear spread are higher today than at either the 2000 or 2007 market peaks. In the recent half-cycle, extreme bullish sentiment and deteriorating market internals also preceded the near-20{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} decline in 2011, yet extreme bullish sentiment was also uneventful on a few occasions when interest rates were in the single digits and market internals were intact. That distinction is critical. The zero-rate “solvent” that allowed overvalued, overbought, overbullish extremes to detach from deteriorating market internals and downside risk is now gone, and investors should understand that subtlety.” — John Hussman: “Red Flags Waving” — December 19, 2016

As Ted Butler said, never underestimate the treachery of JPMorgan et al when they’re out to cover their short positions.  They set a new intraday low in silver, plus a new low close in palladium.

Of course not known is how much more short selling was down by the Managed Money traders in yesterday’s engineered price declines, especially in silver.  But we’ll find out on Friday, because all this data from yesterday should be in the Commitment of Traders Report that comes out on that day.

Here are the 6-month charts for all four precious metals, plus copper.

And as I type this paragraph, the London open is less than ten minutes away — and I see that gold was sold down to its current low by 9 a.m. in Shanghai on their Wednesday morning.  But by shortly after 11 a.m. China Standard Time it had rallied 5 dollars off that low — and has been inching mostly higher since then.  The gold price is currently up $3.00 the ounce.  It was more or less the same price pattern in silver, but its rally ended shortly before 1 p.m. over there — and has been chopping sideways as well.  It’s up 3 cents at the moment.  Platinum and palladium have both been trading lower by a bit in morning trading in the Far East — and the former is down 3 bucks — and that latter by 2.

Net HFT volume in gold is sitting at just over 26,000 contracts — and that number in silver is a hair over 12,000 contracts.

The dollar index rallied a bit in the first hour after trading began at 6:00 p.m. in New York on Tuesday evening, but quickly reversed itself — and by shortly after 10 a.m. CST, it was down 27 basis points from its high tick from an hour earlier.  It’s been chopping sideways since — and is down 15 basis points as London opens.

Well, as I said in my Saturday column at this point…is this the bottom?  It obviously wasn’t last Thursday after the vicious price engineered price declines on that day — and it’s way too soon to tell even after yesterday’s price poundings at the hands of JPMorgan et al.  It’s tempting to call one…again, especially after the rallies in both silver and platinum once their new low ticks were set yesterday in COMEX trading.  But as Ted said on the phone for the umpteenth time on Tuesday afternoon when I mentioned all this…it looks like a bottom, feels like a bottom, but we won’t know for sure until well after the fact.

The rally that follows this will also happen when ‘da boyz’ allow it.  This dollar index rally that they’re using as cover to pound the precious metals at the moment, will disappear in a New York minute when that time comes — and it will be interesting to see what manufactured news event appears to explain that event.

As Ted said in his Saturday column…”I know many believe that JPMorgan is the U.S. Government’s bank, but I am being deadly serious that it’s the other way around – the U.S. Government is a branch of JPMorgan.

And as I post today’s column on the website at 4:05 a.m. EST this morning, I see that gold came under a bit of selling pressure a few minutes before the London open — and now that London has been trading for an hour, the gold price is only up only $1.10 an ounce.  Silver is now down 5 cent — and platinum and palladium are lower as well.  The former is now down 7 dollars — and the latter by 4 bucks.

Net HFT gold volume is now up to a bit over 30,000 contracts — and that number in silver is just under 14,000 contracts.

The dollar index has ‘rallied’ a bit — and is down only 5 basis points, after being down 17 earlier.

After yesterday’s price action, I’ll pass on trying to handicap today’s activity.  But as I said in yesterday’s column, we only have a small handful of trading days left between now and the Christmas break, so I’m expecting both volatility and volume to fall off a bit.  But after Tuesday’s surprise — and what happened this time last year, that’s probably not a wise assumption to make.

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


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