Yellen Speaks…the Dollar Index Rises…and JPMorgan et al Do the Dirty

19 January 2017 — Thursday


The gold price was under a bit of selling pressure in the Far East and London trading sessions on their Wednesday, as the dollar index rallied a bit until the London open.  From that the point, the price chopped sideways until the COMEX open in New York — and it began to drift higher from there.  That ‘rally’ ended a minute or so before the London close, which was 11:00 a.m. EST.  From there it began to drift lower at the same speed it drifted higher, culminating in a sharp sell-off starting at precisely 3:00 p.m…which I would guess corresponded to the time that Yellen opened her mouth.  The sell-off ended at precisely 3:30 p.m. as it touched Tuesday’s opening price.  The gold price rebounded a bit from there, but wasn’t allowed to get far.

The high and low ticks on Wednesday were reported by the CME Group as $1,217.70 and $1,201.80 in the February contract.

Gold was closed in New York yesterday at $1,204.00 spot, down $12.70 on the day, taking almost all of Tuesday’s big gain with it as well.  Net volume was pretty heavy at a hair over 161,000 contracts…but I must admit that it wasn’t as heavy as I was expecting, considering all the price shenanigans.

Here’s the 5-minute gold tick chart from Brad — and a quick glance reveals that the only part of the day that could be considered ‘background’ was in the Far East early on their Wednesday afternoon, which shows up between 21:00 and 22:15 p.m. Denver time on Tuesday night.  Of course the heaviest volume was in New York when JPMorgan et al are in direct control and not using proxies.  Note the huge volume spikes on the engineered price decline between 1 and 1:30 p.m. MST…3:00 to 3:30 p.m. in New York.

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.

It was more or less the same price action for silver.  There was a vertical spike around 10:30 a.m. in New York that got hammered flat soon after and, generally speaking, silver was forced to follow the same price path as gold once that event was out of the way.  ‘Da boyz’ almost got silver back below $17 spot by 3:30 p.m…but didn’t quite get the job done.  Maybe they’ll make it happen today.

The low and high tick in this precious metal was recorded as $17.06 and $17.36 in the March contract.

Silver finished the Wednesday session at $17.025 spot, down 15 cents on the day.  Net volume was just under 53,500 contracts, which was decent.

Here’s the 5-minute silver tick chart courtesy of Brad Robertson as well.  Volume in Far East and London trading was steady, but nothing compared to the volume during the COMEX trading session in New York.  The largest volume spikes came at 8:30 a.m. Denver time/10:30 a.m. in New York on that price spike/capping event — and the sell-off between 1 and 1:30 p.m. MST in silver didn’t have anywhere near the same volume levels as gold during its engineered price decline during the same time period.

Like the 5-minute 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 as well.

The platinum price traded higher by a dollar or so until minutes after 1 p.m. China Standard Time on their Wednesday afternoon — and then the selling pressure began.  It never really let up after that, except for the first two hours and change during COMEX trading and, like gold and silver, its low tick was placed by JPMorgan et al at 3:30 p.m. EST.   And also like silver and gold, it recovered a hair before trading sideways into the 5:00 p.m. close.  Platinum finished the Wednesday session at $961 spot, down 13 bucks on the day.

Palladium traded a few dollars higher in the early going in the Far East on their Wednesday morning, but by noon in Shanghai, it was back in the red by a few bucks.  It chopped sideways from there until shortly after 9 a.m. EST in New York yesterday morning.  Then, like the other three precious metals, it caught a bid until 10:30 a.m. when it was up 3 dollars on the day.  But it was promptly sold down for a small loss, as palladium was closed at $746 spot, down 2 bucks from Tuesday.

The dollar index closed very late on Tuesday afternoon in New York at 100.31…and began to move higher as soon as trading began at 6:00 p.m. EST.  It made it up to around the 100.90 mark just minutes after 8 a.m. on Wednesday morning in New York — and by 10:40 a.m. EST, it was at its New York low of around 100.53.  Then away it went to the upside, with the 101.35 high tick coming a minute or so after 5 p.m…which was precisely 24 hours after it hit its low tick in New York on Tuesday afternoon.  The dollar index was closed yesterday at 101.29 — up 102 basis points from its close on Tuesday — almost completely negating Tuesday’s Trump-inspired sell-off.

Yellen’s open-mouth policy on Wednesday trumped Trump’s open-mouth policy on Tuesday.

Note the melt-up at 3:00 p.m. when it blasted through the 101.00 mark.  I’d guess short covering caused that spike.  But it was the perfect 30-minute cover for ‘da boyz’ to slam the gold price, which they did with relish.  I’ll have more on this in The Wrap.

Here’s the 6-month U.S. dollar index chart — and because a large chunk of the price action in the index came after the COMEX close, the doji for Wednesday doesn’t come close to showing all the changes for the day.  That will appear on the chart after the COMEX close today — and in my column tomorrow.

The gold stocks opened unchanged — and began to rally a bit starting about twenty minutes after the London p.m. gold fix.  Their high ticks, such as they were, came at 11 a.m. EST — and starting at 12:45 p.m. they began to head south in earnest.  Their respective low ticks came minutes before 3:30 p.m. — and they rallied a respectable amount into the close.  This HUI finished down only 1.52 percent.

Note that the sharpest price declines came between 3:00 and 3:30 p.m. EST on that engineered price decline as the dollar index blasted through the 101.00 mark.

As you can tell at a glance, the silver equities followed a very similar price pattern, complete with the price recovery starting a minute or so before 3:30 p.m. EST.  Nick Laird’s Intraday Silver Sentiment/Silver 7 Index closed down 1.86 percent.  Click to enlarge if necessary.

The CME Daily Delivery Report showed that 41 gold and 122 silver contracts were posted for delivery within the COMEX-approved depositories on Friday.  In gold, the only short/issuer was JPMorgan out of its client account — and Canada’s Scotiabank stopped 40 of them.  In silver, it was International F.C. Stone as the sole short/issuer — and the three long/stoppers of note were JPMorgan with 58 contracts for its client account…Scotiabank picked up 38 contracts for its own account…and ADM stopped 20 contracts for its client account.  The link to yesterday’s Issuers and Stoppers Report is here.

The CME Preliminary Report for the Wednesday trading session showed that gold open interest in January declined by 25 contracts, leaving 107 still left, minus the 41 mentioned just above.  Tuesday’s Daily Delivery Report showed that 27 gold contracts were actually posted for delivery today, so that means another 27-25=2 gold contracts were added to the January delivery month.  Silver o.i. in January rose by 1 contract, leaving 230 still around, minus the 122 mentioned in the previous paragraph.  Tuesday’s Daily Delivery Report showed that zero silver contracts were posted for delivery today.

So far this month there have been 557 silver contracts issued and stopped — and that number in gold is 1,175.

For the second day in a row there were no reported changes in either GLD or SLV.

And after that big sales report on Tuesday, the U.S. Mint had nothing to say for itself on Wednesday.

There was a decent amount of gold movement over at the COMEX-approved depositories on the U.S. east coast on Tuesday.  They received 57,672 troy ounces — and shipped out 13,921.  JPMorgan took in the 12,345.600 troy ounces/384 kilobars that were shipped out of Brink’s, Inc.  There was 43,426 troy ounces received at Canada’s Scotiabank — plus 1,575.350 troy ounces/49 kilobars [U.K./U.S. kilobar weight] were shipped out as well.  The link to all that action is here.

It was another big day in silver, as 1,257,073 troy ounces were received — and 632,290 were shipped out.  JP Morgan took in all the 623,349 troy ounces that were shipped out of Brink’s, Inc.  Their silver stash now tops 87.4 million troy ounces.  Scotiabank took in 633,724 troy ounces as well.  The link to all this activity is here.

It was a monster day over at the COMEX-approved gold kilobar depositories in Hong Kong on their Tuesday, as 6,812 kilobars were reported received — and a whopping 12,217 kilobars were shipped off to parts unknown.  As I’ve said before, I dearly love to know where all this gold is coming from, where it’s going to — and who owns it now.  All of this action was at Brink’s, Inc. — and the link to that, in troy ounces, is here.

I have an average number of stories for you today — and there are a few in here that I consider must reads — and I didn’t want to wait until Saturday to post them, so I stuck them in today’s column.


U.S. dollar strengthens after Yellen comments

The U.S. dollar extended its strength in late afternoon trade Wednesday after Federal Reserve Chairwoman Janet Yellen said the central bank expects a few rate hikes a year until end of 2019.

Earlier, the dollar regained ground against its major counterparts with dip-buying kicking in a day after President-elect Donald Trump triggered selling by suggesting the currency was too strong.

The U.S. currency maintained its strength after data showed that inflation in 2016 rose at the fastest pace in five years. The Federal Reserve’s so-called Beige Book also noted that inflation is heating up. Higher inflation could prompt the Federal Reserve to raise interest rates even more rapidly in 2017.

Over the past several weeks, the dollar had been under pressure in a partial reversal of the currency’s strengthening since Trump’s victory in the U.S. presidential election. That downside bias was amplified by comments from Trump that the dollar was already “too strong” in part because China holds down the value of its currency.

This news item appeared on the Internet site at 4:25 p.m. EST on Wednesday afternoon — and I thank Swedish reader Patrik Ekdahl for his first of three contributions to today’s column.  Another link to it is here.  There was another story about this that Patrik sent along as well.  This one is a Bloomberg article headlined “Yellen Says Economy Near Goals Warrants Gradual Rate Hikes

Shoppers still aren’t going to Target, despite the retailer’s big marketing push

Target shares fell nearly 6 percent on Wednesday, as a massive marketing push and spike in digital sales weren’t enough to make up for fewer shoppers visiting its stores.

Despite ramping up the amount of advertisements that spoke to value; extending its free shipping window an additional week; and bringing in nearly 2,000 exclusive toys, the big-box retailer on Wednesday said that comparable sales declined 1.3 percent in November and December.

Electronics and food continued to struggle, while sales in its so-called signature categories — baby, style, kids and wellness — grew nearly 3 points faster than the company average. Target’s rapid 30 percent digital growth significantly outpaced the performance at its stores, where transactions dropped 1.7 percent. Transactions are often used as a gauge for traffic.

If Target’s in-store transactions continue to shrink in January, the holiday quarter will be the third-straight period in which its traffic has fallen.

This business-related story was posted on the Internet site around 2 p.m. EST yesterday afternoon — and it’s the first of two new items that I lifted from yesterday’s edition of the King Report.  Another link to it is here.

One Big, Fat, Ugly Bubble — Nick Giambruno

The establishment is setting up Donald Trump.

The mainstream media hates him. Hollywood hates him. The “Intellectual, Yet Idiot” academia class hates him.

The CIA hates him. So does the rest of the Deep State, or the permanently entrenched “national security” bureaucracy.

They did everything possible to stop Trump from taking office. None of it worked. They fired all of their bullets, but he still wouldn’t go down.

Of course, the Deep State could still try to assassinate Trump. It’s obvious the possibility has crossed his mind. He’s taken the unusual step of supplementing his Secret Service protection with loyal private security.

The Deep State’s next move is to pin the coming stock market collapse on Trump. When people think “Greater Depression,” they’ll think “Donald Trump.”

This commentary by Nick, with the usual Casey Research infomercial at the end, showed up on the Internet site yesterday — and another link to it is here.

Does a Rogue Deep State Have Trump’s Back? — Charles Hugh Smith

Rather than being the bad guys, as per the usual Liberal world-view, the Armed Forces may well play a key role in reducing the utterly toxic influence of neocon/neoliberals within the Deep State.

Suddenly everybody is referring to the Deep State, typically without offering much of a definition.

The general definition is the unelected government that continues making and implementing policy regardless of who is in elected office.

I have been writing about this structure for 10 years and studying it from the outside for 40 years. Back in 2007, I called it the Elite Maintaining and Extending Global Dominance, which is a more concise description of the structure than Deep State. Going to War with the Political Elite You Have (May 14, 2007).

For the past few years, I have been suggesting there is a profound split in the Deep State that is not just about power or ideology, but about the nature and future of National Security: in other words, what policies and priorities are actually weakening or threatening the long-term security of the United States?

I have proposed that there are progressive elements within the sprawling Deep State that view the dominant neocon-neoliberal agenda of the past 24 years as a disaster for the long-term security of the U.S. and its global interests (a.k.a. the Imperial Project).

This commentary by Charles showed up on his website on Tuesday sometime — and it comes to us courtesy of ‘aurora’.  Another link to it is here.


Thomas Paine, as a Liberty Generation nomad, did what his generation was born to do – be a hands on, pragmatic, get it done leader. His vital contribution to the revolution was rousing the colonists with the toughness, resolution, and backbone to withstand the long difficult trials ahead. He, along with other members of his generation – George Washington, John Adams, and Francis Marion, did the heavy lifting throughout the American Revolution.

They knew they would hang if their labors failed, but the struggle for liberty against a tyrannical despot drove them forward against all odds. Paine’s pamphlets, followed shortly thereafter by the Declaration of Independence, marked the regeneracy of the first American Fourth Turning, as solidarity around the cause of liberty inspired by brave words and valiant deeds, propelled history towards its glorious climax at Yorktown.

When you’re in the midst of a Fourth Turning it is hard to step back and assess where you are on a daily basis. This Fourth Turning began in September 2008, with the global financial implosion created by the Fed and their Wall Street puppet masters. We have just achieved the long awaited regeneracy as Trump has stepped forth as the Grey Champion to lead a revolution against the corrupt tyrannical establishment.

The election of Trump did not mark the end for the Deep State, but just the beginning of the end. Just as Paine’s Common Sense and the Declaration of Independence denoted the beginning of a long string of bloody trials and tribulations, Trump’s ascendancy to the presidency has marked the beginning of a battle – with the outcome dependent upon our response to the clashes ahead.

This fascinating commentary, which is the first of two articles that are must reads that I didn’t want to wait until Saturday’s missive.  This one, posted on the Internet site on Tuesday, was sent our way by ‘aurora’ as well — and another link to it is here.

A Demand for Russian ‘Hacking’ Proof:  U.S. Veteran Intelligence Professionals for Sanity

More than 20 U.S. intelligence, military and diplomatic veterans are calling on President Obama to release the evidence backing up allegations that Russia aided the Trump campaign – or admit that the proof is lacking.

MEMORANDUM FOR: President Barack Obama

FROM: Veteran Intelligence Professionals for Sanity (VIPS)

SUBJECT: A Key Issue That Still Needs to be Resolved

As President-elect Donald Trump prepares to take the oath of office Friday, a pall hangs over his upcoming presidency amid an unprecedentedly concerted campaign to delegitimize it. Unconfirmed accusations continue to swirl alleging that Russian President Vladimir Putin authorized “Russian hacking” that helped put Mr. Trump in the White House.

As President for a few more days, you have the power to demand concrete evidence of a link between the Russians and WikiLeaks, which published the bulk of the information in question. Lacking that evidence, the American people should be told that there is no fire under the smoke and mirrors of recent weeks.

We urge you to authorize public release of any tangible evidence that takes us beyond the unsubstantiated, “we-assess” judgments by the intelligence agencies. Otherwise, we – as well as other skeptical Americans – will be left with the corrosive suspicion that the intense campaign of accusations is part of a wider attempt to discredit the Russians and those – like Mr. Trump – who wish to deal constructively with them.

This is the second of two articles that I didn’t want to wait to post until the weekend.  This longish, but very worthwhile and very interesting memo was posted on the Internet site on Tuesday — and I thank Larry Galearis for pointing it out.  Another link to it is here.

Russia Snaps, Accuses U.K., Germany and France of “Grossly Interfering” in the U.S. Election

Having listened stoically for the past two months to accusations without evidence that Moscow “hacked the U.S. election”, and that Hillary’s loss was indirectly due to Putin’s alleged meddling, which resulted in Obama’s expulsion of 35 Russian diplomats, on Wednesday Russian Foreign Minister Sergey Lavrov finally snapped, and lashed out at the ongoing U.S. election scapegoating fiasco, saying that leaders and top officials from the U.K., Germany, and France have “grossly interfered” in U.S. internal affairs, “campaigned” for Hillary Clinton, and openly “demonized” Donald Trump.

Unlike U.S. accusations of Russian interference, at least Lavrov’s claim can be substantiated with a simple Google search of news event in mid to late 2016.

Speaking during a press conference following a meeting with his Austrian counterpart Sebastian Kurz, Lavrov said his angry outburst was because Moscow “is tired” of accusations it meddled in the U.S. election. In fact, Lavrov said, it is time to “acknowledge the fact” that it was the other way around.

U.S. allies have grossly interfered in America’s internal affairs, in the election campaign,” Lavrov said, quoted by RT.

We noticed that Angela Merkel, Francois Hollande, Theresa May, and other European leaders” did so. He added that official representatives of some of the European countries did not mince words, and essentially “demonized” Donald Trump during the election campaign.

This Zero Hedge piece was posted on their Internet site at 6:39 p.m. EST on Wednesday evening –and it’s very much worth your while as well.  I thank ‘aurora’ for his third offering of the day — and another link to it is here.

Davos Elites Call For a Ban on Physical Cash in the U.S.

Roughly two weeks ago, when writing about the cash ban in India, I stated:

If you think the Elites aren’t watching this unfold with sheer delight you’re mistaken. Globally a war on cash has been declared. And India has now proved that it can be done with little consequence. The fact it INCREASE tax hauls (something every Government on the planet wants) is just icing on the cake.

Fast forward to this week at the Davos Economic Forum in Davos Switzerland, and Nobel Prize winning economist Joseph Stiglitz all but said the exact same thing.

Indian Prime Minister Narendra Modi has already removed 86{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} of his country’s currency from circulation in an attempt to curb tax evasion, tackle corruption and shut down the shadow economy.

Joseph Stiglitz, Nobel Prize-winning economist, thinks so. Phasing out currency and moving towards a digital economy would, over the long term, have “benefits that outweigh the cost,” the Columbia University professor said on day one of the World Economic Forum’s Annual Meeting in Davos…

I believe very strongly that countries like the United States could and should move to a digital currency,” he said, “so that you would have the ability to trace this kind of corruption. There are important issues of privacy, cyber-security, but it would certainly have big advantages.”

This commentary from the Phoenix Capital Management website found a home over at Zero Hedge early on Tuesday afternoon.  There’s a big infomercial at the end, but the story is still very much worth reading, regardless.  I thank Brad Robertson for finding this one for us — and another link to it is here.

Davos Elite Fret About Inequality Over Vintage Wine and Canapés

You have perhaps noticed that in many countries, history-altering numbers of people have grown enraged at the economic elite and their tendency to hog the spoils of globalization. This wave of anger has delivered Donald J. Trump to the White House, sent Britain toward the exit of the European Union, and threatened the future of global trade.

The people gathered here this week in the Swiss Alps for the annual World Economic Forum have noticed this, too. They are the elite — heads of state, billionaire hedge fund managers, technology executives.

They are eager to talk about how to set things right, soothing the populist fury by making globalization a more lucrative proposition for the masses. Myriad panel discussions are focused on finding the best way to “reform capitalism,” make globalization work and revive the middle class.

What is striking is what generally is not discussed: bolstering the power of workers to bargain for better wages and redistributing wealth from the top to the bottom.

This New York Times offering, filed from Davos on Wednesday, is something I found in yesterday’s edition of the King Report — and another link to it is here.

Dimon Says Euro Zone May Not Survive If Concerns Are Ignored

The euro region could break up if political leaders don’t get to grips with the discontent that’s spurring support for populist leaders across the continent, JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said.

Dimon said he had hoped European Union leaders would examine what caused the U.K. to vote to leave and then make changes. That hasn’t happened, and if nationalist politicians including France’s Marine Le Pen rise to power in elections across the region “the euro zone may not survive,” Dimon, 60, said in a Bloomberg Television interview with John Micklethwait.

What went wrong is going wrong for everybody, not just going wrong for Britain, but in some ways it looks like they’re kind of doubling down,” Dimon said in the interview Wednesday at the annual meeting of the World Economic Forum in Davos, Switzerland. Unless leaders address underlying concerns, “you’re going to have the same political things about immigration, the laws of the country, how much power goes to Brussels.”

Dimon’s remarks on Europe were unusually pessimistic, coming in a wide-ranging interview in which he also criticized regulations that he said stunt economic growth. But he reiterated optimism for President-elect Donald Trump. Minutes later, Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein also expressed concern about Europe, telling CNBC that leaders are facing a backlash in the midst of a long, complicated process to create an economic bloc.

This Bloomberg story, obviously filed from Davos, appeared on their website at 9:46 a.m. Denver time on Wednesday morning — and was subsequently updated two hours later.  I thank Patrik Ekdahl for his third and final offering to today’s column — and another link to it is here.

Global helmsman Xi Jinping steps up with charm offensive — Pepe Escobar

He did it, his way; Chinese President Xi Jinping descended on the Swiss Alps; profited from a geopolitical vacuum only three days before Donald Trump’s inauguration with the Atlanticist West mired in stagnation and/or protectionism; unleashed a charm offensive; and deftly positioned China in the lead of “inclusive” globalization.

In a wide-ranging speech that went from global angst to China’s new normal, Xi sounded all the right notes that global capital needed to hear; protectionism is like “locking oneself in a dark room,” and “no one is a winner in a trade war.”

His speech delved into the necessity of peace in Syria, the perverse effects of the absence of financial regulation, and the struggle for “balance between efficiency and equity.”

So onwards with the fourth industrial revolution – and may China deliver.

Xi, the first Chinese president to visit the turbo-capitalist World Economic Forum talk fest, meant business from the start.

It’s been a while since we’ve seen any commentary from Pepe — and this one is definitely worth reading.  It showed up on the Asia Times website 9:03 p.m. China Standard Time on Tuesday evening, which was 8:03 a.m. in Washington — EDT plus 11 hours.  I thank Ellen Hoyt for bringing this very important commentary to our attention — and another link to it is here.

China cuts U.S. Treasury holdings to lowest level since 2010

China cut its holdings of U.S. Treasuries by $66 billion in November, reducing its position in the safe-haven debt to the lowest level since 2010 as the country battles to stabilise its currency.

The acceleration in sales — the largest monthly decline since December 2011 — threatens a rise in U.S. interest rates if it continues and follows an unwinding in October that saw China cede its position as the largest foreign holder of U.S. Treasuries to Japan.

China has been selling its foreign exchange holdings in part to support the renminbi, which has fallen 4 percent against the U.S. dollar since the start of last year. The fall in Treasury holdings is part of a wider campaign by Beijing to stem capital outflows.

This news item appeared in the Financial Times of London on Wednesday.  Only the above three paragraphs are posted in the clear.  The rest are behind their subscription wall.  I found this on the Internet site last evening — and a link to the FT‘s website is here.


British Columbia reader ‘Zoey’ is on vacation in Florida at the moment — and she sent along this first photo of Chinese Button Quail, which I’d never heard of before.  It’s not as detailed as I’d like to see, but look how tiny they are!  They call them quail, but they aren’t related to the North American variety at all.  There are 16 different species — and I think that the second shot [which I took off the Internet] is an extreme close-up of a male of the red-breasted variety.  He would be about life-size as he appears in this photo.  That’s how tiny they are. The click to enlarge feature should help for the second picture.


“Just like the tip of an iceberg is the only visible portion of the entire mass of the iceberg, JP Morgan’s COMEX warehouse silver holdings…87.4 million troy ounces…are only a small visible percentage of the bank’s total silver holdings, around 15{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} of the total 550 million oz I calculate the bank has acquired over the past six years. Yet remarkably, even though JPM’s COMEX holdings are as visible as the tip of an approaching iceberg, relatively little is written about even the visible portion of the bank’s silver stockpile.

“Anyone associated with silver analysis or commentary not commenting on JP Morgan’s COMEX silver holdings and asking why those holdings have grown so large is, in my opinion, missing a lot. I admit that it takes some analytical snooping and digging to trace the physical silver holdings JPM has accumulated through SLV conversions of shares to metal, plus the accumulation of metal through Silver Eagles and Canadian Maple Leafs. But the stopping of silver deliveries on the COMEX by JPM and the subsequent movement of these deliveries into JPM’s own warehouse even Stevie Wonder could see (in the dark).”Silver analyst Ted Butler: 14 January 2017

Well, most of the gains we saw on Tuesday, disappeared yesterday — and JP Morgan et al had the perfect cover for it.  It’s a reasonable bet that a lot of the Managed Money traders who went long on Tuesday, got blown out of those positions in both gold and silver yesterday.  I didn’t talk to Ted about it, but it had all the hallmarks of his “scam within a scam” where the Commercial traders picked up 10 or 20 million bucks for a day’s work.

It remains to be seen if we’ll have more down-side price action again today, but nothing would surprise me.

Here are the 6-month charts for all four precious metals, plus copper, once again — and like the other day, all of Tuesday’s price action doesn’t show up on these charts, because a lot of it occurred after the 1:30 p.m. COMEX close, which is the cut-off time for these charts.   And, like the dollar index chart at the top of this column, we won’t see the true picture until today’s doji shows up after the COMEX close this afternoon.

And as I write 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 Thursday.  They have gold back below $1,200 the ounce — and silver is safely back below $17 spot once again.  The 50-day moving averages are but a chip shot for them from these price levels.

Right now gold is down $4.20 an ounce — and silver is down 15 cents, but off its low by a few pennies.  Platinum is down 3 dollars — and palladium is actually up 2 bucks, after being sold down in early morning trading in Shanghai along with the other three precious metals.

Net HFT gold volume is around the 47,000 contract mark — and that number in silver is a hair under 14,000 contracts.  Both of these are pretty heavy for this time of day.  It’s obvious that JPMorgan et al are finishing the job they started yesterday — and there may be more to come.

The dollar index rallied about 10 basis points during the first hour of trading once the market opened at 6:00 p.m. EST last night, but by 11:30 a.m. China Standard Time, it was down 10 basis points.  It didn’t do much until precisely 3:00 p.m. CST on their Thursday afternoon — and it’s been moving higher since — and is now up 2 basis points as London opens.

The downdrafts in the precious metal prices so far today have not corresponded to any of the moves in the currencies in Far East trading, such as they are, so it’s JPMorgan et al back to doing what they want — and when they want to do it, with no currency moves to hide behind.

I would suspect that any deterioration that occurred in the commercial net short positions in both gold and silver as a result of Tuesday’s rally, have now been completely negated, so tomorrow’s Commitment of Traders Report is already “yesterday’s news” in some respects.

And as I post today’s column on the website at 4:00 a.m. EST this morning, I note that gold rallied a bit starting shortly after the London open.  It’s back above the $1,200 spot mark — and down only $1.20 an ounce.  The silver price is rising as well.  It’s not yet back above $17 spot, but it’s only down 9 cents an ounce currently.  Platinum is down 2 dollars now that Zurich has been open an hour — and palladium is only up buck.

Net HFT gold volume is just about 54,500 contracts — and that number in silver is around 16,300 contracts.

The dollar index rally that began at 3:00 p.m. in Shanghai on their Thursday afternoon, didn’t amount to much — and rolled over about thirty-five minutes later — and is now down 12 basis points.

I’m still very much in a ‘wait and see’ mode regarding what happens to precious metal prices between now and the close of trading on Friday.  And as you can tell, prices of just about everything are more or less at the mercy of the powers-that-be at the moment.

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


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