JP Morgan et al In the Silver Spotlight Again

03 February 2017 — Friday


The gold price rallied a bit until shortly before noon China Standard Time on their Thursday morning — and then was sold lower until shortly after 3 p.m. over there.  It then chopped higher until the 10:30 a.m. morning gold fix in London — and then didn’t do much until 1 p.m. GMT.  Fifty minutes later — and half an hour after the COMEX open, it was at its high tick for the day.  Then the spoofing and the HFT boyz showed up.  The New York low tick came at 12:40 p.m. EST — and although it rallied a few dollars into the COMEX close, the gold price inched quietly lower after that for the remainder of the Thursday session.

The low and high tick were reported by the CME Group as $1,210.20 and $1,227.50 in the April contract.

Gold was closed in New York yesterday at $1,215.40 spot, up $5.80 from Wednesday’s close — and ten bucks off its high of the day.  Net volume was monstrous once again at just over 210,000 contracts.

Here’s the 5-minute gold tick chart courtesy of Brad Robertson once again.  Volume was slightly elevated in London — and there was a huge volume spike at, or just before, the London a.m. gold fix, which is 3:30 a.m. Denver time on this chart.  Then the volume dropped precipitously, only to reappear at 6:00 a.m. MST when the price began to rally hard at 1 p.m. GMT in London.  There was decent volume in New York, but it didn’t drop off to anything resembling background levels until sometime after 12 p.m. MST/2 p.m. EST.

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.

JPMorgan et al had silver follow almost the same price path as gold once again, so I’ll spare you the details, except to point out that once they’d walked the price lower, they had the audacity to close it down on the day as well — and back below its 100-day moving average.

The low and high ticks in this precious metal were recorded as $17.415 and $17.745 in the March contract.

Silver finished the Thursday session at $17.455 spot, down 5.5 cents on the day — and two bits off its high tick.  Net volume was reasonably heavy once again at just under 47,500 contracts — and roll-over/switch volume out of March was pretty chunky as well.

Here’s the 5-minute tick chart for silver and, as usual, I thank Brad Robertson for sending it our way.  Silver had a big volume spike at, or just before, the London morning gold fix, just like gold.  From there volume dropped off until the 1 p.m. GMT rally began in London…8 a.m. in New York…and twenty minutes before the COMEX open.  From there, volume was pretty decent until just after the 11:30 a.m. Denver time COMEX close and, except for the odd bump, volume pretty much cratered after that.

As in gold, 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 chart was mostly a derivative of what gold and silver’s chart looked like yesterday.  At its high tick, platinum was up to the $1,009 spot mark, but ‘da boyz’ took the price down into negative territory around 12:30 p.m. EST.  But it struggled back into the green in the thinly-traded after-hours market — and managed to close up a buck at $997 spot.

Palladium was up 8 bucks at $768 spot in early afternoon trading in the Far East.  But shortly after 9:30 a.m. in Zurich, the price pressure began — and by the 1:30 p.m. EST COMEX close, the price was down 5 dollars on the day.  It gained a dollar in after-hours trading — and finished the Thursday session at $756 spot, down 4 dollars from Wednesday’s close.

The dollar index closed very late on Wednesday afternoon in New York at 99.76 — and began to head lower as soon as trading began a few minutes later at 6:00 p.m. EST Wednesday evening.  The 99.23 low tick was set at, or minutes before, the London morning gold fix, which was 10:30 a.m. GMT.  One the ‘fix was in’…the powers that be went to work on the dollar index — and its 99.87 high tick came a minute or so after 3 p.m. EST in New York.  It traded pretty flat from there into the close — and finished the Thursday session at 99.82…up 7 basis points on the day.

You should carefully note that gold, silver and platinum’s high ticks came well over three hours after the dollar index put in it low of the day — and well into the ‘rally’ in the dollar index.  It should be obvious to all but the willfully blind — and those whose jobs depends on them not seeing it — that precious metal prices would have continued to rise if ‘da boyz’  and their algorithms hadn’t appeared when they did thirty minutes after the COMEX open.

Here’s the 6-month U.S. dollar index.  The currency markets are just as rigged as all other markets are these days.

The gold stocks blasted to their respective highs the minute that trading began in New York at 9:30 a.m. EST on Thursday morning.  But by 10:15 a.m…half those gains were gone…and from there the shares crawled quietly but unsteadily higher for the rest of the day.  The HUI closed up 2.25 percent.

The silver equities also hit their highs at the open of trading in New York at 9:30 a.m. EST.  From there they chopped lower, with their respective lows coming about 12:20 p.m.  Then, within fifteen minutes or so, they blasted higher, regaining most of their previous losses — and then chopped sideways into the close from there.  Nick Laird’s Intraday Silver Sentiment/Silver 7 Index closed higher by 1.96 percent.  I thought that was exceptional considering the fact that JPMorgan closed silver down on the day.  Click to enlarge if necessary.

The CME Daily Delivery Report for Day 4 of the February delivery month showed that 136 gold and 6 silver contracts were posted for delivery within the COMEX-approved depositories on Monday.  In gold, the only short/issuer worthy of the name was ABN Amro with 112 contracts out of their client account.  All three of the “usual suspects” in the long/stopper category had their noses stuck in the delivery trough again…HSBC USA, Scotiabank and JPMorgan…with 65, 32 and 25 contracts for their respective in-house [proprietary] trading accounts.  In silver, ED&F Man Capital Markets issued 6 contracts.  Scotiabank picked up 4 — and Citigroup 2 contracts.  The link to yesterday’s Issuer and Stoppers Report is here.

If you read this part of my Thursday column, you should remember that the CME Group had not updated the Wednesday Preliminary Report data.  I said that I would include it in today’s column…and here it is.

The CME Preliminary Report for the Wednesday trading session showed that gold open interest in February fell by 971 contracts, leaving 2,497 still open, minus the 263 contracts mentioned above.  Tuesday’s Daily Delivery Report showed that 1,159 gold contracts were actually posted for delivery today, so that means that another 1,159-971=188 gold contracts were added to the February delivery month.  Silver o.i. in February declined by 36 contracts, leaving 149 still around, minus the 1 contract mentioned in the previous paragraph.  Tuesday’s Daily Delivery Report showed that 50 silver contracts were actually posted for delivery today, so that means that another 50-36=14 silver contracts were added to February.

The CME Preliminary Report for the Thursday trading session showed that gold open interest in February declined by 111 contracts, leaving 2,386 still open, minus the 136 contracts mentioned three paragraphs ago.  Wednesday’s Daily Delivery Report showed that 263 gold contracts were actually posted for delivery today, so that means that 263-111=152 more gold contracts were added to the February delivery month.  Silver o.i. in February actually rose 18 contracts, leaving 167 still around…minus the 6 contracts mentioned three paragraphs ago.  Wednesday’s Daily Delivery Report showed that only 1 silver contract was posted for today, so that means that another 1+18=19 silver contracts got added to February yesterday.

There was another deposit in GLD yesterday, as an authorized participant added 47,630 troy ounces of gold.  There was also a withdrawal from SLV, as an a.p. removed 136,564 troy ounces of silver.  That may have been for a fee payment of some kind — and if it was, it was a big one.

And for the second day in a row, there were no reported sales from the U.S. Mint.

It was a pretty busy day for gold over at the COMEX-approved depositories on the U.S. east coast on Wednesday.  JPMorgan took in 32,150.000 troy ounces/1,000 kilobars [U.K./U.S. kilobar weight] — and 76,356.250 troy ounces/2,375 kilobars [U.K./U.S. kilobar weight] was shipped out of Canada’s Scotiabank.  A link to that activity is here.

It was another busy day in silver.  Nothing was reported received, but 1,344,590 troy ounces were shipped out.  Of that amount, there was 1,314,456 troy ounces that came out of Scotiabank — and the remainder was withdrawn from CNT.  The link to that action is here.

Over at the COMEX-approved gold kilobar depositories in Hong Kong on their Wednesday, they must be back from their New Year holiday, as they reported receiving 3,000 kilobars — and shipped out only 164 of them.  All of this activity was at Brink’s, Inc. — and the link to that, in troy ounces, is here.

I don’t have all that many stories today, but some of them are certainly worth your time if you have it.


GE, Boeing, Oracle form coalition to support Republican border tax

U.S. companies including major exporters General Electric Co and Boeing Co launched a coalition on Thursday to back a House Republican plan to tax all imports, saying the proposal would “support American jobs and American-made products.

The group, comprised of more than 25 U.S. companies and dubbed the “American Made Coalition,” also includes Dow Chemical Co, Eli Lilly and Co, Pfizer Inc, and Oracle Corp, the companies confirmed.

The group’s launch underscored a growing division in corporate America over the House Republican proposal that would cut corporate income tax to 20 percent from 35 percent, exclude export revenue from taxable income and impose the 20 percent tax on imports.

American workers and businesses are not competing today on a level playing field with foreign competitors because of an outdated and unfair tax system,” said John Gentzel, a spokesman for the coalition. The current tax system unfairly subsidizes imports of foreign goods, the group said.

David Lewis, Lilly’s vice president of finance and corporate tax, said in a statement the group supports the House Republican blueprint.

This rather amazing Reuters story, filed from Washington, put in an appearance on their Internet site at 7:37 p.m. on Thursday evening EST — and it’s the first of two news items that I ‘borrowed’ from today’s edition of the King Report.  Another link to it is here.

Whom will Trump blast next over their currencies?

With all the Trump administration’s jawboning about countries devaluing their currencies to gain an unfair trade advantage, financial markets are left wondering: Who’s next?

Canada, Mexico, and even South Korea are potential candidates for exchange-rate criticism, according to William Cline, a senior fellow at the Peterson Institute for International Economics in Washington. That’s because those nations are some of the U.S.’s biggest trading partners, and in the case of South Korea, its currency is also 6 percent undervalued, according to a PIIE study.

Who else would be on the list — in the first instance, the larger countries that matter more to our trade,” Cline said Wednesday. “I don’t think most economists would agree that they’re cheating, but that’s the conclusion that these kinds of attacks would imply.

This Bloomberg story was posted on their website at 10:05 a.m. Denver time on Thursday morning — and I found it embedded in a GATA release.  Another link to it is here.

Pundits Stunned After Trump Hangs Up On Australia Prime Minister, Slamming “Dumb Deal”

First, the AP reported that according to a transcript of a phone call between the presidents of the U.S. and Mexico, Trump threatening to send U.S. troops to Mexico if it was unable to stop the “bad hombres down there.” Then, in a separate report from The Washington Post, Trump labeled a refugee swap deal with Australia “dumb” on Thursday after a Washington Post report of an acrimonious telephone call with Australia’s prime minister, replete with alleged “yelling” and which Trump hung up after just 25 minutes, that has threatened a rift in ties between the two ally nations.

The Post reported that Trump described the resettlement plan as “the worst deal ever” and accused Australia of trying to export the “next Boston bombers“. At one point, Trump reportedly informed Turnbull that he had spoken with four other world leaders that day — including Russian President Vladi­mir Putin — and that “this was the worst call by far.The Post also said Trump had boasted to Turnbull about the size of his election victory.

#BREAKING Sky News sources say Donald Trump was ‘yelling’ during his phone conversation with PM Turnbull and hung up after 25 minutes  — Sky News Australia (@SkyNewsAust) February 2, 2017

It said the call had been scheduled to last an hour but Trump cut it short after 25 minutes when Australian Prime Minister Malcolm Turnbull tried to turn to subjects such as Syria. Turnbull told reporters the call with Trump at the weekend had been frank and candid but refused to give further details.

This Zero Hedge article showed up on their Internet site at 11:21 a.m. EST on Thursday morning — and it comes to us courtesy of Richard Saler.  Another link to it is here.

An Economic Showdown is Looming — Dennis Miller

The Keynesians and the Capitalists are heading for an economic showdown at the O.K. Corral.

Keynesians believe the central government should control the economic levers affecting the masses. The economy can’t be entirely left up to the free market. Big government believers want the “leaders” determining the winners and losers. Controlling reallocation of wealth preserves the power of the political class. Using tax dollars to garner votes has turned into an art form.

George Bernard Shaw said, “A government that robs Peter to pay Paul can always depend on the support of Paul.

U.S. “guesstimates” 2017 spending on welfare and Medicaid will top $1.127 trillion. While the welfare class grows, Peter is working his butt off and sees a lot of his hard earned money wasted.

Many felt the elections in Britain (Brexit) and the US were similar, a major push-back against a powerful, controlling central governments. Margaret Thatcher reminds us, “The problem with socialism is that you eventually run out of other people’s money.”

This commentary by Dennis appeared on his Internet site yesterday — and another link to it is here.

Why an “imminent” Robin Hood tax is the latest nail in the E.U.’s coffin

It is easy to be sceptical when any European Commissioner comes out and says something is imminent – particularly when you consider the ponderous and remote nature of the various institutions that make up the EU.

But with Britain no longer having a say, last week’s comments from Commissioner Pierre Moscovici about a financial transaction tax being “within reach” seems more of reality, rather than another political football endlessly being kicked down the road.

More commonly referred to the Robin Hood Tax, the FTT would slap a 0.05 per cent tax on any stocks, currencies, bonds and derivatives traded.

Clearly, as a country accounting for over 30 per cent of European wholesale finance across Europe, the UK would also be hit. But this would pale into insignificance in comparison to the one EU member states face should this tax finally come to fruition.

This news item was posted on the Internet site at 3:47 p.m. GMT on Thursday afternoon, which was 10:47 a.m. in New York.  It’s an article I found in today’s edition of the King Report — and another link to it is here.

There we go! The U.S. blames Russia for the Ukronazi attack on the Donbass — The Saker

What a total disaster!  Trump might as well have kept Samantha Power at the U.N.

I am rather disgusted.

Well, so much for better relations with Russia.  This tiny piece, with a 3:48 minute video clip embedded, was posted on Internet site late yesterday — and it’s worth your while if you have the interest.  I thank ‘aurora’ for sending it our way.  Another link to it is here.

Putin on East Ukraine flare-up: Kiev trying to extort U.S. and E.U. cash by playing the victim

The Kiev government provoked the latest escalation of violence in east Ukraine as it needs money from its Western partners, which is easier to achieve when a nation pretends to be a victim and facing aggression, Russian President Vladimir Putin has said.

The Ukrainian leadership today needs money, and the best way to extort money is [to do that] from the European Union, from certain countries in Europe, from the United States and international institutions, presenting itself as a victim of aggression,” Putin said.

The Russian leader made the comments during a joint press conference with Hungarian Prime Minister Viktor Orban in Budapest.

This news story, with a couple of embedded video clips, appeared on the Internet site at 3:43 p.m. Moscow time on their Thursday afternoon, which was 7:43 a.m. in Washington — EST plus 5 hours.  I thank Roy Stephens for his first contribution to today’s column — and another link to it is here.

In Critical Situation: Press-Conference of the Head of DPR, Zakharchenko

This short video features Alexander Zakharchenko, who is said to be the current head of state and Prime Minister of the self-proclaimed state of the Donetsk People Republic [DPR].  He discusses the the fighting that erupted in eastern Ukraine on Wednesday, February 1.

The video clip runs for 4:25 minutes — and was posted on Internet site in the wee hours of this morning Iceland time — and it’s courtesy of Roy Stephens as well.  Another link to it is here — and it’s worth a few minutes of your time.

U.N. reports ‘heavy losses’ among Kiev troops, militia in Avdeyevka

The clashes near eastern Ukraine’s Avdeyevka resulted in “heavy losses” on both sides, U.N. Under-Secretary-General for Political Affairs Jeffrey Feltman told the U.N. Security Council.

He said the organization received “reports of civilian casualties, including at least four deaths since the escalation on 28 January, and heavy losses among the combatants on both sides.

The U.N. also received reports about the “recorded damage to civilian houses and a school” in populated areas of Avdeyevka, which raise “serious concerns about possible violations of international humanitarian law by all sides.

There are now reports of clashes that are directly endangering civilian crossing points, residential areas and crucial civilian infrastructure, such as water purification plants and delivery systems, power lines and heating supply lines,” Feltman said.

This news story, filed from the U.N., was posted on the Internet site at 3:36 a.m. Moscow time on their Friday morning, which was 7:36 p.m. in Washington — EST plus 8 hours.  It’s the third story in a row from Roy Stephens — and another link to it is here.

Analyzing Current Trends: Russia and West on the Threshold of Drastic Changes in Relationship

The prospects for improvement of Russia-U.S. relations become a matter of grave concern for European politicians. With Donald Trump’s «America First» policy, Europe may be left on its own. The calls for lifting the sanctions against Russia are getting louder – loud enough to make this issue become a part of E.U.’s shaping external strategy.

Italy’s former Prime Minister and European Commission ex-President Romano Prodi called on Europe to scrap immediately the anti-Russian sanctions, rather than wait for U.S. president Donald Trump to do it first. His opinion on the sanctions is very illustrative. According to the patriarch of European politics, «The fact that it is necessary to lift the sanctions with Russia immediately. I am deeply convinced of this. You can sacrifice themselves for the sake of reaching a consensus, but when neither of which Solidarity has no question, there is no point in continuing to fight. One wise Calabrian proverb says, who pretend to be sheep, the wolf will eat that. First you need to play the card of not allowing American to occupy a privileged position in its relations with Russia».

Confusion reigns in Germany. Trump attacks Berlin despite the fact that Germany has always been loyal to Washington. It was the first to impose sanctions on Russia, even though it was contrary to its own immediate interests. Vice Chancellor Sigmar Gabriel warned of a «drastic radicalization» in American politics and said Berlin stood ready to fill the void left by an isolationist Washington. Frank-Walter Steinmeier, the current Minister for Foreign Affairs and Chairman-in-Office of the Organization for Security and Co-operation in Europe (OSCE), believes that «by choosing Donald Trump, the old world of the 20th century is over». «The order of the 21st century and the way the world of tomorrow will look is not settled; it is completely open […] I know we have to adjust to troubled times, to some unpredictability and new uncertainties», Mr. Steinmeier wrote in his piece published by Bild on January 23.

This commentary showed up on the Internet site yesterday — and was probably written before the U.S. blamed Russia for the outbreak of fighting in the Donbass region of eastern Ukraine at the U.N. yesterday.  But, having said that, it’s still worth reading — and another link to it is here.  It’s the fourth and final offering of the day from Roy Stephens.

Ask the Expert – Keith Neumeyer – January 2017

This month’s Ask the Expert is Keith Neumeyer, CEO of First Majestic Silver.

Mr. Neumeyer has worked in the investment community since 1984. He began his career at a number of Canadian national brokerage firms. Mr. Neumeyer moved on to work with several publicly traded companies in the resource and high technology sectors. His roles have included senior management positions and directorships responsible in areas of finance, business development, strategic planning and corporate restructuring. Mr. Neumeyer was the original and founding President of First Quantum Minerals Ltd.

He founded First Majestic Silver in 2002 and First Mining Finance in 2015. Mr. Neumeyer has also listed a number of companies on the Toronto Stock Exchange and as such has extensive experience dealing with the financial, regulatory, legal and accounting issues that are relevant in the investment community. Mr. Neumeyer also won the E&Y Entrepreneur of the Year Award in 2011 for the Metals & Mining category.

This 17:18 minute Sprott Money audio interview [with full transcript] with Keith was posted on their website recently I would suspect — and I thank Paul Fillion for bringing it to our attention.  Another link to it is here.

Man who smuggled gold in rectum from Royal Canadian Mint gets 30 months in prison, $190K fine

The former Royal Canadian Mint employee who apparently used his rectum to smuggle 22 solid gold “pucks” out of the secure facility in Ottawa has been given a 30-month prison sentence and must pay a fine of $190,000.

In November, 35-year-old Leston Lawrence was found guilty of stealing the 22 pucks from the mint on Sussex Drive, and of laundering 17 of them through Ottawa Gold Buyers (the cheque for an 18th puck never cleared because that puck was seized by police).

Lawrence was also found guilty of possession of property obtained by crime, conveying gold out of the mint and breach of trust by a public official.

Ontario Court Justice Peter Doody ruled Thursday that Lawrence would have to serve an additional 30 months if he doesn’t pay the $190,000 fine within three years of being released from prison.

The weight of the 17 laundered pucks ranged from 192 to 264 grams apiece and were sold for between $6,800 and $9,500 each in 2014 and 2015.

This CBC news item was picked up on the Internet site very early on Thursday morning EST — and my thanks goes out to Brad Robertson for sharing it with us.  Another link to it is here.

Silver-rigging anti-trust lawsuits against JP Morgan Chase reinstated

Market Slant reported last night that the U.S. 2nd Circuit Court of Appeals in New York has reinstated the silver-market rigging lawsuits against JPMorgan Chase, finding that the district court judge who dismissed the lawsuits engaged in “impermissible fact finding.”

The case returns to the district court for more proceedings and presumably evidence discovery and deposition.

JPMorgan Chase & Co had won the dismissal of three private antitrust lawsuits, including from hedge fund manager Daniel Shak, accusing the largest U.S. bank of rigging a market for silver futures contracts traded on COMEX.The lawsuits accused JPMorgan of having in late 2010 and early 2011 placed artificial bids onto the trading floor, harangued employees at metals market COMEX to obtain prices it wanted, and made misrepresentations to a committee that set settlement prices.

We shall await further news on this as it becomes available.  This silver-related article was posted on the Internet site at 7:33 p.m. EST last night — and I found it in a GATA release.  Another link to it is here.

Justice Department tries to stall discovery in silver price-fixing case

Silver investors accusing major banks of price-fixing urged a New York federal court in a document posted Tuesday to forgo the U.S. Department of Justice’s proposed one-year discovery stay, asking the court to strike a compromise to “better balance the governmental and private interests at stake.”

In a heavily redacted document dated Jan. 19 but posted Tuesday, the investors asked to keep open the broader discovery in their consolidated proposed class action against banks including HSBC and The Bank of Nova Scotia, saying the Justice Department’s timeline to accommodate its criminal investigation would severely hamper the present multi-district litigation.

The department does not proffer any time frame for when it might file charges against any of its targets. Thus, the department’s proposal will result in a lengthy stay of this action,” the investors wrote.

The government asked to join the suit in early January and requested a partial year-long stay of civil discovery while it conducts criminal investigations, saying the move would actually make way for the civil suit to forge ahead.

In any event — and far from grinding to a halt — the proposed partial stay will allow significant aspects of the civil litigation and civil discovery to continue,” the department contended in a Jan. 9 memorandum.

This must read silver-related news item was posted on the Internet site on Wednesday sometime — and I found it in a story on the Internet site.  Another link to it is here.


Today’s exotic critter also hails from Africa — and it’s another bird that I’d not heard of before.  It’s the go-away-bird, grey lourie, or kwêvoël.  It’s a bold and common bird of the southern Afrotropics. They are present in arid to moist, open woodlands and thorn savanna, especially near surface water.  The first photo is of the grey variety…the second, the white-bellied…Click to enlarge.


“The traders that have filled the price influence vacuum in silver (and gold) are the technical fund managed money traders and the banks that trade against these technical funds. There are likely no more than 30 or so technical funds and counterparty banks on either side of the vast majority all COMEX silver trading and, in reality, no more than 10 traders on either side account for 90{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} of all COMEX trading. In other words, no more than ten traders on either the long or short side of COMEX silver trading determine the price of silver for the rest of the world. I say that’s nuts and manipulative on its face. Yet it is as real as rain — and will remain that way until it doesn’t — or until the actual market takes the price reins from the distorted derivatives market by a physical silver shortage (with JPMorgan’s blessing).” — Silver analyst Ted Butler: 01 February 2017

For the second day in a row the precious metals were forced to follow the machinations of the U.S. dollar index whether they wanted to or not.  Even a cursory comparison of the precious metal prices vs. the dollar index chart at the top of this column is proof enough of that.

I was particularly intrigued by the fact that the precious metal equities held up as well as they did once JPMorgan et al began to put the boots to gold and silver price starting shortly before 9 a.m. in New York.  And in case you missed it, the rally in the dollar index didn’t end until 3 p.m. EST — and started about four hours before their respective prices got smacked.  So much for correlation….

Here are the 6-month charts for all four precious metals, plus copper, once again.  I’ve exchanged the 200-day moving average on the silver chart for its 100-day moving average, so you can see why it appears that this price is an important stake in the ground, at least for the moment.

And as I type this paragraph, the London open is less than ten minutes away — and I see that the gold price chopped lower until shortly before noon in Shanghai — and then began to move slowly higher from there — and is only down $1.80 an ounce at the moment.  Silver was sold down about 20 cents during the same time period, but has rallied back to down only 10 cents currently.  It was mostly the same for platinum and it’s down 5 bucks.  Palladium was sold down — and kept down — and it’s down 7 dollars the ounce.

Net HFT gold volume is almost 41,000 contracts already — and that number in silver is pretty chunky as well at just under 12,500 contracts.

The dollar index opened mostly unchanged at 6:00 p.m. EST yesterday evening, but dropped 10 basis points around 9 a.m. China Standard Time, but has been chopping higher since — and is currently up 4 basis points as London opens.

Well, we get the job numbers at 8:30 a.m. EST this morning — and it remains to be see whether precious metals are getting teed up to be hammered lower…or not.  We’ll only know in the fullness of time, so it’s useless to speculate.

We also get the latest Commitment of Traders Report for positions held at the close of COMEX trading on Tuesday — and here, in part, is what Ted had to say about it what it might contain:  “Maybe the commercials might try to cap prices before all moving averages are penetrated to the upside, but we’re going back to the possibilities of short term selloffs which we know always exist…[but] the setup for a silver price explosion is intact, even if diminished slightly or derailed temporarily.

So we wait — and whatever the number show, I’ll have them for you in Saturday’s column.

And as I post today’s column on the website at 4:00 a.m. EST this morning, I see that not much has changed in the first hour of trading in both London and Zurich.  Gold is down $2.10…silver is now down 12 cents — and platinum and palladium are lower by 5 and 7 dollars respectively.  It’s pretty quiet.

Net HFT gold volume is just over 45,000 contracts — and up only 4,000 contracts from an hour ago.  Silver’s net HFT volume is 13,500 — up only a thousand contracts since I reported on them a few minutes before the London open.  There’s nothing going on, so nothing should be read into the current price action.

The dollars index has been chopping along just below the 100.00 mark since just before noon in Shanghai on their Friday — and is now up 14 basis points on the day.

Enjoy your weekend, or what’s left of it if you live just west of the International Date Line — and I’ll see you here tomorrow.



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