JP Morgan et al Step Into the COMEX Futures Market in Gold in New York

23 February 2017 — Thursday


The gold price chopped around a dollar or two either side of unchanged in Far East trading on their Wednesday.  It caught a bid shortly after 8:30 a.m. GMT in London — and from there it chopped higher until around 8:45 a.m. in New York.  At that juncture, the short buyers and long sellers of last resort appeared — and the low tick was set at 11:45 a.m.  It rose unevenly from there until the Fed minutes were released at 2 p.m. EST.  It spiked back into positive territory by a few bucks, before getting capped.  The price didn’t do a lot after that.

Gold traded in an 8 dollar price range yesterday, so I shall dispense with the low and high ticks.

Gold finished the Wednesday session at $1,237.20 spot, up $1.80 from Tuesday.  Net volume was pretty heavy at just over 188,00 contracts.

Silver didn’t do anything at all yesterday, although it should be carefully noted that the price was kept at, or below, the $18 spot mark until the thinly-traded after-hours session in New York yesterday afternoon.  And even though it was only above that price for a few minutes, it was sold down below it by the 5:00 p.m. EST close.

Silver was forced to trade in a 20 cent price range all day long, so there are no low and high ticks worthy of the name.

Silver finished the day at $17.98 spot, up 5 cents from Tuesday’s close.  Net volume was pretty quiet at just under 35,000 contracts and, not surprisingly, roll-over/switch volume out of March was monstrous.

The platinum price chopped sideways in a pretty tight range until 8:45 a.m. in New York.  Then, like in gold, the price was sold down a bit, but rallied back to unchanged on the Fed news — and actually closed up a buck on the day at $1,002 spot.

Palladium’s $784 high tick on Wednesday came in mid-morning trading in Shanghai — and it chopped quietly lower until around 1:40 p.m. CET in Zurich, which was 7:40 a.m. in New York…EST plus 6 hours.  Then the price decline really got serious, with its $763 low tick coming right at 2 p.m. EST.  The Fed news popped the price for a few bucks — and it closed at $768 spot, down 12 dollars from Tuesday.  It was down 20 bucks at its low tick.

The dollar index closed very late on Tuesday afternoon in New York at 101.44 — and began to head south as soon as trading began at 6:00 p.m. EST Tuesday evening.  The index made it down to the 101.26 mark — and then crawled higher until precisely 2:00 p.m. CST [China Standard Time].  It chopped quietly higher until the noon silver fix in London.  It began to head erratically lower, with three decent-sized counter-trend rallies embedded, with the 101.17 low tick occurring around 3:45 p.m. EST.  The third counter-trend rally of the New York session began at that point — and the dollar index finished the Wednesday session at 101.33…down 11 basis points from Tuesday.

And here’s the 6-month U.S. dollar index chart — and you can read into it whatever you wish, which shouldn’t be much.

The gold stocks gapped down a bit at the open — and kept right on going.  They began to rally staring about ten minutes before the 1:30 p.m. EST COMEX close — and got bumped up a bit more on the Fed minutes.  They edged a bit higher after that, as the HUI closed down 1.80 percent.

It was mostly the same in the silver equities, although they poked their respective noses into positive territory for the briefest of moments at 10 a.m. EST.  Then they followed the gold stocks pretty much tick for tick — and despite a positive close in this precious metal as well, Nick Laird’s Intraday Silver Sentiment/Silver 7 index closed down a very decent 2.01 percent.  Click to enlarge if necessary.

The CME Daily Delivery Report showed that 5 gold and 120 silver contracts were posted for delivery within the COMEX-approved depositories on Friday.  In gold, three contracts were issued by ADM — and the other 2 by Canada’s Scotiabank.  HSBC USA and JP Morgan stopped 3 and 2 contracts for their respective in-house [proprietary] trading accounts.  In silver, the only short/issuer was JP Morgan out of its client account.  There were six long/stoppers in total, with the largest three being Scotiabank, Merrill and Citigroup…with 71, 24 and 18 contracts respectively.  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 February fell by 32 contracts, leaving 730 still open, minus the 5 mentioned just above.  Tuesday’s Daily Delivery Report showed that 24 gold contracts were actually posted for delivery today, so that means that 32-24=8 February contract holders in gold departed the scene.  Silver o.i. in February declined by 52 contracts, leaving 121 still left, minus the 120 contracts mentioned in the previous paragraph.  Tuesday’s Daily Delivery Report showed that 52 silver contracts were, in fact, posted for delivery today…so the open interest decline and the deliveries match exactly for a change.

Silver open interest for March only dropped by 4,538 contracts, leaving 45,939 contracts still around — and I was expecting a fairy large five-digit o.i. decline in this/Wednesday’s report.  With only 3 business days left for all traders to exit March [except those standing for delivery] we’re going to see some eye-watering declines in open interest over that time period…starting today, I would expect.

There were no reported changes in GLD yesterday — and as of 6:05 p.m. EST yesterday evening, there were no reported changes in SLV, either.

There was no sales report from the U.S. Mint.

There was no gold reported received at the COMEX-approved depositories on the U.S. east coast on Tuesday.  But 62,823.054 troy ounces/1,954 kilobars [SGE kilobar weight] were shipped out of HSBC USA.  A link to that activity is here.

There was no silver received, either — and 621,777 troy ounces were received.  All but 2,892 troy ounces of that amount went into CNT.  A link to that activity is here.

There was no gold received over at the COMEX-approved gold kilobar depositories in Hong Kong on their Tuesday, but they did report shipping out 654 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 for you today, but a fair number of the ones I do have are worthy of your time, if you have it.


FOMC Minutes Hint at Hike “Fairly Soon“, But Warns Trump Policies May “Not Materialize“, VIX Too Low

March rate hike odds are unchanged (below 40{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e}) and the yield curve has flattened since The Fed’s February statement (despite heavy jawboning and higher inflation data) and so the Minutes were expected to help ease the markets to not be surprised. And they were…MANY FED OFFICIALS SAW HIKE `FAIRLY SOON‘ IF ECONOMY ON TRACK. However, the Minutes also showed ‘balance‘ by not proclaiming concern over inflation – *MANY FED VOTERS SAW ONLY MODEST RISK OF SIGNIFICANT INFLATION and FED OFFICIALS SAW DOWNSIDE RISKS FROM FURTHER DOLLAR STRENGTH.

Here is the key excerpt in which the Fed says a rate hike may be needed “fairly soon” if all goes according to plan…

key segment many participants expressed the view that it might be appropriate to raise the federal funds rate again fairly soon if incoming information on the labor market and inflation was in line with or stronger than their current expectations or if the risks of overshooting the Committee’s maximum-employment and inflation objectives increased.

However in a surprising twist, some Fed members explicitly warned that the market has gotten ahead of itself and that Trump’s fiscal policies may never materialize…

A few participants commented that the recent increase in equity prices might in part reflect investors’ anticipation of a boost to earnings from a cut in corporate taxes or more expansionary fiscal policy, which might not materialize.

The Fed also warned once again that “valuation pressures have risen” since the election. [And as Bill King said in this morning’s King Report…”The DJIA hit an all-time high for the ninth consecutive session on Wednesday, the venerable index’s longest new high streak since, gulp, January 1987.“]

This commentary on the Fed minutes appeared on the Zero Hedge website at 2:03 p.m. on Wednesday afternoon EST — and comes to us courtesy of Brad Robertson.  Another link to it is here.

14,000 Evacuate San Jose; Massive Flooding in Numerous Northern California Areas: Don’t Blame Global Warming!

As rains dump torrents of water across California, the worst flooding in 100 years hits many locations. In San Jose, 14,000 faced Mandatory Evacuation Orders.

As mandatory evacuations continued for a second day, San Jose officials said Wednesday they could still not provide a timetable for when thousands of residents would be allowed to return after the city was hit by what officials described as the worst flooding in 100 years.

[San Jose Mayor Sam Liccardo] vowed a full investigation into why there was not more warning before the floodwater hit the center of the city, saying many residents were caught off guard.

If the first time a resident is aware that they need to get out of a home is when they see a firefighter in a boat, then clearly there has been a failure,” he said.

This very interesting news item was posted on the Internet site at 5:24 p.m. EST on Wednesday afternoon — and I thank Roy Stephens for pointing it out.  Another link to it is here.

Will Juncker finally quit in row over closer union? E.U. chief could walk out if his plans to reshape Europe are blocked

Jean-Claude Juncker may dramatically walk out of his top Brussels post just weeks before Brexit negotiations begin amid an escalating row about his plans to reshape Europe, it emerged yesterday.

The outspoken European Commission president is said to have been left furious after several top leaders tried to block the release of his grand blueprint on the future of the E.U.

Mr. Juncker was determined to present a white paper setting out a vision for how Europe can progress after Brexit at a key meeting of E.U. chiefs next month.

But it has now emerged the Brussels chief is on the cusp of quitting his lofty role after leaders supposedly rounded in an attempt to block the proposals.

Leading E.U. countries, including France, Germany and Holland, expressed concerns about his decision to release the report at a time when Europe is under intense scrutiny.

His potential departure, which would likely coincide with the triggering of the Article 50 exit clause, would send shock waves throughout Europe.

This ‘story’ showed up on the U.K. tabloid Internet site just after midnight GMT on Tuesday.  A reader sent it to me that day, but for whatever reason I decided not to post it.  It also appeared in yesterday’s edition of the King Report — and because I have so little for you, I decided to post it now.  Another link to it is here.

Lavrov Deep-Fries Merkel: ‘U.S. Tapped Your Phone, But You’re Whining About ‘Russian Hacking’?

It’s not even up for debate — Sergei Lavrov is in a league of his own. Russia’s Foreign Minister mutilates Washington soundbites in his sleep and eats NATO press releases for breakfast — no salt.

As you are well aware, Sergei dropped a payload of painful truth on Mike Pence’s smug, smarmy face during the Munich Security Conference on Saturday. But that was just a warm-up. Pence is a small fish in a big ocean of idiots.

On the sidelines of the Munich conference, Lavrov participating in a meeting with top diplomats from the Normandy Four (Russia, Germany, France and Ukraine).

Angela Merkel used this opportunity to lecture Lavrov and the rest of the audience about the dangers of Russian hacking.

You think Lavrov just sat there and took it on the chin?  No.  When it was his turn to speak, he reminded the entire world that Angela Merkel’s phones were tapped by her “ally”, and that this is a confirmed fact, and that Angela Merkel is a sad puppet.

Ain’t that the truth, dear reader!!!  This short article, has an embedded video clip as well — and it’s definitely worth your time if you have the interest.  I thank Roy Stephens for another contribution to today’s column — and another link to it is here.

Is Détente Really Dead? — Stephen F. Cohen

Washington and Moscow observers are saying American allegations that President Trump is a Kremlin puppet have killed the new Russia policy he promised.

The Nation Contributing Editor Stephen F. Cohen and John Batchelor continue their weekly discussions about the new U.S. – Russian Cold War.

As Cohen explained to Batchelor last week—and as he further explains in a Nation article this week—there are no actual facts to support the six different allegations put forth in the U.S. political-media establishment purporting to show that President Trump has been “compromised” by the Kremlin.

Nonetheless, those allegations, along with the downfall of Trump’s national-security adviser, Gen. Michael Flynn, have had a big political impact on the possibility of Trump’s proposed détente with Russian President Vladimir Putin. Commentators in both capitals have concluded that such a possibility has been greatly diminished, possibly killed, because Trump no longer has a chance to muster political support at home for a new Russia policy. Cohen and Batchelor discuss this general subject in connection with the following points made by Cohen

This must read news item from The Nation was put in an appearance on their Internet site at noon EST on Wednesday.  Embedded in the commentary is the Tuesday, February 21 edition of the 40-minute long Batchelor/Cohen radio interview.  The interview is certainly worth your time as well, if you have it — and I’ll have the audio interview, plus the Larry Galearis executive summary, in Saturday’s column, too.  Another link to this is here.

Are Russian diplomats being assassinated? (UPDATED) — The Saker

Since the death of Vitaly Churkin I see more and more speculations that Russian diplomats are being killed (example here and here)  This is exceedingly unlikely and I consider these speculations to be based on ignorance and a form of “clickbaiting”.  Here is why:

1.  So four senior Russian diplomats have died in one month.  Considering how many diplomats Russia has worldwide, this hardly a tsunami.

2.  They died in Ankara (murder), Athens (natural causes), New Delhi (disease) and New York (heart attack).  There is no pattern, no modus operandi, no common link between these men and their deaths.
3.  During the Cold War the U.S. and Soviets had an understanding that they would not attack each others personnel simply because any such attack would trigger an immediate retaliation which both sides wanted to avoid.  There is absolutely nothing suggesting that this has changed.
4.  Killing diplomats is useless.  They don’t really take decisions but their symbolic value is immense.  Thus the benefit for murdering them is zero and the cost potentially a nuclear war.
5.  Russia is not the Palestinian Authority which had to ask for a French expertise to establish the real cause of death of Yassir Arafat.  If anybody hard murdered Russian diplomats the Russians would inevitably find out who did it and why and the retaliation would be terrible (all, repeat, all the Takfiri Chechen leaders have by now been killed by the Russians, as have been the units who killed the Russian pilot in Syria as have been the key Takfiri leaders in Aleppo).

This brief commentary by The Saker showed up on his website on Tuesday sometime — and it’s yet another offering from Roy Stephens.  Another link to this short article is here.

All aboard reckless bandwagon blaming Russian subversion — Finian Cunningham

Russia is being blamed for interfering in elections across the globe, from the U.S., Britain, Germany to Estonia and others. Now the tiny Balkan state of Montenegro has jumped on the bandwagon, with an even more reckless version of the ‘Russia-did-it’ trope.

This week Montenegro’s state prosecutor concluded Russian state agents were not only trying to subvert elections, but the alleged plot also involved the attempted assassination of the former prime minister, to prevent it becoming a member of NATO.

With suspiciously good timing, the far-fetched story was given dubious credibility by Britain’s Telegraph newspaper. The day before the Montenegrin prosecutor made the announcement, The Telegraph published an article in which anonymous “Whitehall sources” issued the same claims of a Russian-sponsored coup attempt in Montenegro during the country’s parliamentary elections last October.

The fact The Telegraph is a well-worn conduit for British military intelligence disinformation is relevant.

Moscow lambasted the accusations as “absurd.” Kremlin spokesman Dmitry Peskov said the claims were “irresponsible,” having been leveled without any supporting evidence.

I wonder where all this horses hit will end.  This “blame it on the Russians for everything” meme really is getting tiresome.  Some hard proof would be useful.  But, alas, there is none for any of these accusations.  This longish commentary by Finian appeared on the Internet site on Tuesday — and it’s certainly worth reading if you have the interest.  It comes courtesy of Roy Stephens — and another link to it is here.

Donald Trump, Saudi Arabia, and the Petrodollar

Obama pulled out his veto pen 12 times during his presidency.

Congress only overrode him once…

In late 2016, Obama vetoed the Justice Against Sponsors of Terrorism Act (JASTA). The bill would allow 9/11 victims to sue Saudi Arabia in U.S. courts.

With only months left in office, Obama wasn’t worried about the political price of opposing the bill. It was worth protecting Saudi Arabia and the petrodollar system, which underpins the U.S. dollar’s role as the world’s premier currency.

Congress didn’t see it that way though. Those up for reelection couldn’t afford to side with Saudi Arabia over U.S. victims. So Congress voted to override Obama’s veto, and JASTA became the law of the land.

The Saudis, quite correctly, see this as a huge threat. If they can be sued in U.S. courts, their vast holdings of U.S. assets are at risk of being frozen or seized.

This worthwhile commentary by senior editor Nick Giambruno showed up on the Internet site yesterday — and another link to it is here.

China’s $9 trillion moral hazard is now too big to ignore

China may be about to embark on its most ambitious — and perilous — campaign to convince investors that they shouldn’t depend on a bailout when markets go south.

In a rare show of cooperation, the nation’s main financial regulators are drafting new rules for asset-management products that aim to make clear the investments don’t have government guarantees, people familiar with the matter told Bloomberg News on Tuesday.

The products, which promise higher returns than bank deposits but are viewed by many investors as a form of risk-free savings, have become an integral part of the Chinese financial system after swelling in recent years to almost $9 trillion as of June 30.

Policy makers face a difficult balancing act. If they fail to dispel the notion of an implicit government guarantee, riskier investments could proliferate and pose an even greater threat to the financial system when China faces its next bout of market turmoil. But if authorities act too forcefully now, they risk triggering a stampede away from products that have become a key funding source for banks.

This very worthwhile Bloomberg news item showed up on their website at 10:24 p.m. Denver time on Tuesday night — and was subsequently updated at 1:31 MST on Wednesday morning.  I found it in a GATA dispatch yesterday — and another link to it is here.

Alabama Bill Would Help Encourage Use of Gold and Silver as Currency

A bill introduced in the Alabama House last week would remove sales taxes from the purchase of gold and silver, encouraging its use and taking the first step toward breaking the Federal Reserve’s monopoly on money.

Rep. Lynn Greer (R-Rogersville) introduced House Bill 238 on Feb. 16. The legislation would exempt the gross proceeds from the sale of gold, silver, and platinum bullion, and coins from sales and use tax in the state.

Imagine if you asked a grocery clerk to break a $5 bill and he charged you a 35 cent tax. Silly, right? After all, you were only exchanging one form of money for another. But that’s essentially what Alabama’s sales tax on gold and silver does. By removing the sales tax on the exchange of gold and silver, Alabama would treat specie as money instead of a commodity. This represents a small step toward reestablishing gold and silver as legal tender and breaking down the Fed’s monopoly on money.

Practically speaking, eliminating taxes on the sale of gold and silver would crack open the door for people to begin using specie in regular business transactions.

This would mark an important small step toward currency competition. If sound money gains a foothold in the marketplace against Federal Reserve notes, the people would be able to choose the time-tested stability of gold and silver over the central bank’s rapidly-depreciating paper currency.

This gold-related news item, filed from Montgomery, was posted on the Internet site on Tuesday — and I found it on the Sharps Pixley website last evening.  Another link to it is here.

Scandal Erupts as Russia Rushes to Increase Gold Reserves

Gold reserves are handy in wartime, especially when your enemies are the United States Government and the US dollar banking system operating worldwide.

So, since the war to overthrow President Vladimir Putin began in 2014, the Central Bank of Russia has accelerated its purchases of gold bullion by more than double, becoming the largest gold buyer among the world’s central banks, and the holder of the sixth largest gold reserve.  Roughly half the volume of this gold has been bought by the Central Bank from Russian gold mines.

Putin has also decided to start digging out Sukhoi Log, in Irkutsk region. That’s the largest unmined gold deposit in Russia, and one of the biggest proven reserves of mineable gold in the world.

For the past quarter of a century, the Kremlin has been unwilling to decide who, if anybody, will be permitted to mine Sukhoi Log.  That decision was finally made last week, when Prime Minister Dmitry Medvedev confirmed the award of the licence to mine Sukhoi Log to a special purpose company formed by Russian Technologies (Rostec, Ростех,  RT) and Polyus Gold. Together, they are paying Rb9.406 billion (about $162 million) for the licence.  “According  to the Governmental order affirming the results of the auction, SL Gold Limited Liability Company…, a company established by JSC Polyus and LLC RT Business Development [Rostec], will be granted the right to develop Sukhoi Log for the exploration works and extraction of gold and silver…Subject to obtaining the license, the Company intends to conduct additional exploration works and a feasibility study, which is expected to last for approximately three to four years, supported by international mining and engineering consultants. Based on the results of that study, the Company will evaluate options to initiate construction activities at the Sukhoi Log.

What this means is that Rostec and Polyus Gold are promising to take up to four years to re-read the mountain of geological, metallurgical and engineering studies, reports and plans compiled on Sukhoi Log for 25 years  by every major Russian and international mine consultancy, including the leading goldminers of Canada, Australia, South Africa, and the U.K. Then, when the re-reading is done, Rostec and Polyus Gold aren’t promising to produce any gold at all. On this undertaking, they have borrowed state bank cash in order to pay the state budget a licence fee. This looks like a privatization, but it is a phantom.

I’m not sure what to make of this longish gold-related news item that was posted on the Internet site yesterday.  I don’t know anything but the internal goings-on inside the Russia precious metal mining industry…nor anything about the person that wrote this article…so I urge you to read this with your eyes wide open.  I thank Ellen Hoyt for sharing it with us — and another link to it is here.


The title of British Underwater Photographer of the Year 2017 went to Nick Blake from Dublin, Ireland, for his photo “Out Of The Blue” taken in a freshwater sinkhole in Mexico, known as Chac Mool Cenote. Blake commented “underwater photographers can move freely in three dimensions, so I adjusted my position in the water to capture the symmetrical framing of the light beams by the rocks.” The click to enlarge feature is a must for this shot.


The current issue of the World Gold Council’s newsletter features an exclusive interview with Alan Greenspan, the former head of the Federal Reserve. The World Gold Council, funded by gold miners, has an understandable and legitimate objective of fostering increased investment and generally higher prices for gold, as would any producer-funded trade group. (Silver, on the other hand, has no such producer group, as the Silver Institute is comprised of producers and consumers and even has representation by the COMEX).

I have followed Dr. Greenspan for years, before he was appointed as head of the Fed in 1987, even back to his days at Townsend-Greenspan Associates. I can’t say I ever understood many of his pronouncements in public testimony over that time, but my understanding was that the testimony was largely intended to be that way – intentionally ambiguous. I have heard Dr. Greenspan mention gold on numerous occasions and even remember some years back, after he left the Fed, an interview on CNBC where he suggested they include copper on their flashing tickers, a suggestion the network took and maintains to this day. However, never have I heard Greenspan utter the word ‘silver’.

That’s why I was nearly blown away to read Dr. Greenspan mention silver three times in one paragraph of section 2 of the interview. Maybe he has mentioned silver in the past, but I’m pretty sensitive to such matters and I don’t recall any past mentions. In any event, this is very much in keeping with my premise that gold advocates and investors seem to be regarding silver much more than previously — and how this reflects the crawling phase before new investors find their way to silver.Silver analyst Ted Butler: 22 February 2017

Despite the fact that the dollar index was sliding lower through most of the New York trading session yesterday, it was obvious that JP Morgan et al put in an appearance in gold shortly before 9 a.m. in New York.  The gold price had been rising steadily since shortly before 9 a.m. GMT in London on their Wednesday morning — and looked set to tack on more gains in the COMEX trading session, until the long sellers and short buyers of last resort showed up.

The silver price showed almost no visible signs of external market forces, as it’s currently in the throes of the final roll-overs/switches out of the March contract.  Options expiry is today, I believe — and all the large traders in the COMEX futures market have to be out by the close of COMEX trading on Friday…the rest at the COMEX close on Monday.

Net volume in silver wasn’t overly heavy — and I was surprised by the fact that March open interest didn’t decline by much in yesterday’s Preliminary Report.  This is something I’ve already discussed at some length in the first part of today’s column.

Here are the 6-month charts for all four precious metals, plus copper.  The only one of the precious metals that really got it in the neck yesterday was palladium.  The click to enlarge feature helps a bit with the first four charts.

And as I type this paragraph, the London open is less than ten minutes away — and I note that like on Tuesday in Far East trading, there’s not much going on, on Wednesday either.  The gold price is down 80 cents at the moment.  Silver has been down most of the day in Shanghai as well — and down a nickel currently.  Platinum has been chopping quietly lower since trading began at 6:00 p.m. EST on Wednesday evening in New York — and is down 8 bucks.  Palladium traded pretty flat until about thirty minutes ago — and was down 8 bucks at its low, but has bounced off that — and is only  down 4 dollars as the Zurich open approaches.

Net HFT gold volume is pretty quiet at just over 26,000 contracts — and that number in silver is sitting at 4,000 contracts — and roll-over/switch volume out of March is enormous already, with almost all of it going into the new front month, which is May.

The dollar index rallied a handful of basis points once trading began at 6:00 p.m. in New York on Wednesday evening…but by 1:30 p.m. in Shanghai on their Thursday, it was down 13 basis points to the 101.20 mark.  It began to head higher from there — and topped out at the 101.44 mark about forty minutes before the London open.  It has turned lower since then — and is now down 1 basis point — and off its current high tick by 12.

I must admit that I’m rather underwhelmed by the soft price action in the precious metal shares so far this week — and a quick glance at the gold and silver charts posted above indicates that a topping pattern may be in progress.  I wouldn’t be at all surprised if we saw an engineered price correction from here…courtesy of JPMorgan et al…particularly in silver — and that’s despite the fact that the set-up in the COMEX futures market in gold is very bullish.

Of course, as always, I’d love to be proven spectacularly wrong about that, but I have to call it the way I see it — and that’s the way it looks at the moment.

And as I post today’s column on the website at 4:00 a.m. EST, I see that not a thing is going on with gold — and it’s down 40 cents.  The same for silver — and it’s down the same 5 cents it was at the London open an hour ago.  Platinum is now down 9 dollars — and palladium is down 3 bucks.

Net HFT gold volume is sitting at 32,500 contracts — and that number in silver is a hair under 5,000 contracts — and roll-over/switch volume out of March into May continues to climb rapidly.

The dollar index continues to sneak lower — and is now down 4 basis points.

That’s all I have for today — and nothing will surprise me when I check the charts after I roll out of bed later this morning.

See you tomorrow.


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