JP Morgan et al Strike Again

04 May 2017 — Thursday


NOTE No. 2:  Some subscribers are still having log-in issues after a minor and what has turned out to be a non-inconsequential change that my webmaster made to WordPress.  Some of the issues have been dealt with, but some remain.

About two months ago I also upgraded my website with a secure URL with the https:// designation, making it a ‘safe’ site when readers subscribe or renew.  It wasn’t really necessary, but it was a concern for some.  Here’s the new URL:

If you’re still having log-in issues, I’d advise you to change your bookmark for my website to this one, as your old bookmark may still be using the old http:// designation.

Once you’ve made that change, I suggest you try logging in using a different web browser, as that’s been a ‘fix’ for some.  But we’re still waiting to hear from WordPress as to what the issue might be.

I’ll keep you updated as details come in.


The gold price traded pretty flat until around 2 p.m. China Standard Time on their Wednesday afternoon.  it began to edge lower at the juncture — and that lasted until shortly after 9 a.m. BST in London.  It inched higher from there until ‘da boyz’ showed up at the COMEX open.  The first low came at 10:30 a.m. EDT — and although it recovered a bit from there, it continued to crawl lower until shortly before the Fed news.  It began to head higher the moment that the COMEX closed at 1:30 p.m…but JP Morgan et al were waiting — and the rest as they say, is history.  The low tick of the day was set around 4:10 p.m. in the thinly-traded after-hours market — and it traded mostly sideways into the 5:00 p.m. close from there.

The high and low ticks were recorded by the CME Group as $1,257.80 and $1,236.40 in the June contract.

Gold was closed in New York yesterday afternoon at $1,237.70 spot down $19.20 on the day.  Gold was also closed below its 50-day moving average, but by less than two dollars.  Net volume was pretty heavy at something over 233,000 contracts.

Brad Robertson is still away, so I don’t have the 5-minute tick charts, would certainly have proved useful today.

The silver price spent all of Far East trading in positive territory by a handful of pennies…but shortly after London opened, it was sold down to a few pennies below unchanged — and then traded flat until ‘da boyz’ showed up at 1 p.m. BST in London, which was twenty minutes before the COMEX open.  It was sold lower until shortly before 10:30 a.m. in New York — and from there it traded mostly sideways until a smallish rally developed the moment that the COMEX closed.  Like gold, that tiny rally got sold lower when the clock struck two bells — and ‘da boyz’ showed up.  They set another new intraday low for this move down at precisely 4:00 p.m. in the thinly-traded after-hours market.  It recovered from that down/up move in minutes — and then traded flat into the close.

The high and low ticks in silver were reported as $16.895 and $16.415 in the July contract.

Silver was closed yesterday at $16.45 spot, down 36.5 cents from Tuesday.  It’s twelfth consecutive low close in a row.  Net volume was monstrous at just over 77,500 contracts.

Here’s the New York Spot [Bid] chart for silver, so you can see Wednesday’s price action in more detail.

Platinum traded ruler flat until around 12:30 p.m. CST on their Wednesday afternoon — and began to fade from there.  The real selling pressure began around 1:40 p.m. in Zurich, which was 7:40 a.m. EDT in New York.  The powers-that-be set the low tick of the day shortly after 4 p.m. — and it traded flat into the close from there.  Platinum finished the day at $896 spot, down a whopping 28 bucks.  “Da boyz” were showing no mercy yesterday.

Palladium traded higher by a dollar or so in Far East trading — and was up about that amount at the Zurich open.  It shot higher from there — and was up 5 bucks by 9:30 a.m. Zurich time.  But that, as they say, was that.  JP Morgan et al showed up — and hammered the price to its $791 low tick right at 8 a.m. in New York.  It recovered a bunch of that spike lower by shortly after the Zurich close, but ‘da boyz’ reappeared at that point — and sold it down into the New York close.  Palladium finished the Wednesday session at $797 spot — and down 20 dollars on the day.

The dollar index closed very late on Tuesday afternoon in New York at 98.95 — and touched the 98.89 mark around 8 a.m. CST [China Standard Time] on their Wednesday morning.  It didn’t do a lot until just before noon over there — and then began to chop higher until shortly after the London open.  From that point it traded sideways in a very narrow band until “The Words” were spoken at 2:00 p.m. EDT in New York.  The ramp job/short covering rally began at that juncture — and the 99.39 high tick was placed shortly before 5 p.m. EDT — and it didn’t do a lot after that.  The dollar index finished the Wednesday session in New York at 99.38 — up 43 basis points from Tuesday’s close.

But it was all the ‘fig leaf’ that JP Morgan et al needed, as they did the dirty in the COMEX futures market.  This included all four precious metals and, for the second day in a row, copper wasn’t spared either.

And here’s the 6-month U.S. dollar index chart — and it continues to chop sideways along its 200-day moving average.  So much for ‘the precious metals following the dollar index’ bulls hit we hear so much about.  I hope you give this myth the decent burial it deserves, dear reader.

The gold shares opened unchanged!  Their respective low ticks came at the COMEX low for gold, which was minutes before 10:30 a.m. EDT.  Then they began to rally!  Of course the selling began once “The Words” came down — and all of the day’s gains vanished by the 4:00 p.m. close of trading.  But the fact that the HUI closed virtually unchanged on the day [down 0.05 percent] should be of some comfort.  It was obvious that there was huge bottom-fishing going on yesterday.

The silver equities opened down a bit, with their respective lows coming at the same time as their golden brethren.  Then away they went to the upside as well — and were in positive territory for the last thirty minutes going into “The Words”.  They sold down from there, of course — and back into negative territory — but the fact that Nick Laird’s Intraday Silver Sentiment/Silver 7 Index closed down only 1.35 percent when the underlying metal got slaughtered by ‘da boyz’, gives some indication that a major bottoming process is rapidly approaching.  Click to enlarge if necessary.

The CME Daily Delivery Report showed that 166 gold and 600 silver contracts were posted for delivery within the COMEX-approved depositories on Friday.  In gold, the largest short/issuer was HSBC USA with 100 contracts out of its own account.  In distant second place was ED&F Man Capital Markets with 29 contracts out of its client account…followed by RCG with 22 contracts out of its own account.  It was a bit of a dog’s breakfast, as there were nine long/stoppers in total…with ED&F Man, ADM and RCG stopping 45, 38 and 36 contracts respectively.  A lot of strange issuers and stoppers yesterday in gold yesterday.  In silver, the two largest short issuers were Macquarie Futures and ABN Amro with 241 and 240 contracts respectively.  The Macquarie contracts were from there in-house [proprietary] trading account — and ABN Amro’s from their client account.  International F.C. Stone was a distant third with 64 out of its client account.  There were eleven long/stoppers in total — and the three largest were ABN Amro, ADM and HSBC USA…with 235, 178 and 102 contracts for their respective client accounts.  JP Morgan was a stopper for its client account as well, but it was way down the list.  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 May fell by 139 contracts leaving 196 still open, minus the 166 mentioned just above.  Tuesday’s Daily Delivery Report showed that 131 gold contracts were actually posted for delivery today, so that means that 139-131=8 gold contracts disappeared from May without either making or taking delivery.   Silver o.i. in May only dropped by 70 contracts, leaving 1,037 still around, minus the 600 contracts mentioned in the previous paragraph.  But Tuesday’s Daily Delivery Report showed that 313 silver contracts were actually posted for delivery today, so that means that another 313-70=243 silver contracts were added to the May delivery month!

Lemme see here…168 silver contracts got added to May on Monday, another 174 on Tuesday, plus another 243 mentioned above.  Add in the 49 contracts mentioned in Saturday’s column — and we’re up to 634 additional silver contracts added to the May delivery month so far…that’s 3.17 million troy ounces of silver — and not paper silver, either.

So far this month, there have been 3,626 silver contracts issued and stopped — and silver open interest in March right now is 437 contracts.  Without doubt, every contract of that will be delivered, plus who knows how much more will be added.  We should be well over 4,000 contracts issued and stopped just in the next few days.  Another big month — and there appears to be some urgency to get the deliveries over with in a hurry.

There were no reported changes in GLD once again, but there was a small withdrawal from SLV, as an authorized participant took out 144,187 troy ounces.  Without doubt, that small of an amount would certainly represent a fee payment of some kind.

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

There was very little activity in gold over at the COMEX-approved depositories on the U.S. east coast on Tuesday.  Nothing was reported received — and only 4,725 troy ounces were shipped out the door.  All of that activity, such as it was, came from the Delaware depository.

In silver, there was one container load received…600,019 troy ounces…and that was dropped off at JP Morgan.  Nothing was shipped out.  There was another transfer from Eligible to Registered over at the CNT depository — and that amount was 455,225 troy ounces.  And as point of interest, there was 60,897 troy ounces of silver adjusted out of existence from the Eligible category over at JP Morgan.  The link to all of that activity is here.

JP Morgan’s COMEX silver stash is now up to 107.6 million troy ounces.

It was an average day over at the COMEX-approved gold kilobar depositories in Hong Kong on their Tuesday.  They reported receiving 3,038 of them, plus they shipped out another 1,634.  All of this activity was at Brink’s, Inc. — and the link to that, in troy ounces, is here.

Here are two more charts from Nick Laird.  These show India’s gold and silver imports for March.  In gold, they imported 105.6 tonnes — and that number in silver was 361.4 tonnes.  Click to enlarge for both charts.

Once again I don’t have all that many stories for you today.


Hawkish” Fed Shrugs Off “Transitory” Weakness in Data, Signals More Rate Hikes Ahead

Having perfectly top-ticked U.S. economic data with its March rate-hike, the subsequent collapse in ‘data’ has been shrugged off as transitory (or seasonal) and by all indications The Fed seems set on two more rate hikes this year no matter what (even as the market diverges dovishly).

* FED SAYS 12-MONTH INFLATION RUNNING CLOSE TO ITS 2{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} GOAL

There was no mention of the most hotly debated topic at this moment, the Fed’s balance sheet. But at least the Fed was unified this time – there were no dissenters.

This Zero Hedge news item showed up on their Internet site at 2:02 p.m. on Wednesday afternoon EDT — and another link to it is here.

Puerto Rico Files For Bankruptcy Protection In Largest Ever U.S. Municipal Debt Restructuring

As per our report last night that following the expiration of the litigation freeze, Puerto Rico’s creditors had filed a barrage of lawsuits against the insolvent Commonwealth a bankruptcy was imminent,  moments ago Puerto Rico’s governor announced the commonwealth will request bankruptcy protection of a portion of the island’s $70 billion in debt, setting up a showdown with Wall Street firms owed billions of dollars, in what will be the largest-ever U.S. municipal debt restructuring and further complicating the U.S. territory’s efforts to pull itself out of a financial crisis.

The Puerto Rico restructuring would be far larger than Detroit’s record-setting bankruptcy, with little to no details how long a court proceeding would last or what cuts would are imposed on bondholders. The island’s financial recovery plan covers less than a quarter of the debt payments due over the next decade.

Cited by AP, Gov. Ricardo Rossello said Wednesday that a federal control board overseeing the island’s finances has agreed with his request to put the debts before a court. He told reporters that he has requested that the U.S. territory’s federal financial oversight board commence a Title III proceeding.

We have reached this decision because it protects the best interests of the people of Puerto Rico,” Rossello said.

The board has agreed to submit Title III protection immediately — and they will submit it.

This is another Zero Hedge story from Wednesday.  This one was posted there at 1:15 p.m. EDT — and another link to it is here.

Buy a home, get a car free: offers galore as London estate agents struggle to sell

London estate agents have begun to offer free cars worth £18,000, stamp duty subsidies of £150,000, plus free iPads and Sonos sound systems to kick start sales in the capital’s increasingly moribund property market. The once super-hot central London market has turned into a “burnt-out core” according to buying agents Garrington Property Finders, prompting developers to offer ever greater incentives to lure buyers.

At one development in Muswell Hill, a relatively affluent part of north London, sales agents said this week they would be giving away a Renault Zoe electric car (RRP £18,045) to every house buyer. They would also pay stamp duty on the £1.99m homes, at £153,000.

Apart from the free prosecco and gourmet pizzas available to those viewing the properties, anyone willing to put down a £2,500 deposit at the development’s launch night this week will also walk away with a free iPad.

The developer, Jamm, insists that sales are robust and that “this is absolutely not a sign of desperation”. Director Tim Jackson said: “There is a lot of nervousness out there with the election and Brexit, and buyers are looking for excuses not to buy. We’re giving them reasons to buy.

This news item showed up on Internet site at 7:10 p.m. BST on  their Wednesday evening, which was 2:10 p.m. in New York — EDT plus 5 hours.  I thank Swedish reader Patrik Ekdahl for sharing it with us — and another link to it is here.

Cable Drops as P.M. May Says European Officials Have Issued Threats Against U.K.

Following the ridiculously round number demands of €100 billion ransom to leave the E.U., U.K. P.M. Theresa May has stated that E.U. officials have issued threats against the U.K. as Europe’s negotiating stance has toughened. Furthermore, May accuses E.U. countries of trying to maliciously influence UK general election result.


There are some in Brussels who do not want these talks to succeed, who do not want Britain to prosper.”

In the last few days we’ve seen just how difficult these talks are going to be

Britain’s negotiating position in Europe has been misrepresented in the European press

This brief 1-chart Zero Hedge article was posted on their website at 10:48 a.m. EDT on Wednesday morning — and another link to it is here.

Belgian finance minister warns E.U. — change or die

Brexit has “shattered” the principle of ever closer union in the E.U., according to the Belgian finance minister, who warned that the bloc had to transform itself to survive.

Johan Van Overtveldt said there was “clearly a problem” with the European Union, as he called for a quick, comprehensive trade deal with the U.K. and warned that punishing Britain would be counterproductive.

Mr Van Overtveldt said a “different” and “better” E.U., that focused on key areas such as security, migration, jobs and trade instead of policing trivial policies would help to boost prosperity in the bloc and remove the discontent sweeping across the Continent.

Sixty years after signing the Treaty of Rome, and 25 years after the Maastricht Treaty, the European Union is in trouble and is certainly in need of new inspiration and new directions. The E.U. cannot continue operating the way it does today,” he said at an event organised by the European Economics and Financial Centre in London.

He urged policymakers to take a different approach to integration and said the idea of an E.U. forged in crisis put forward by Jean Monnet – dubbed the father of Europe – was “dead”.

This story appeared on the Internet site at 8:20 p.m. BST on Tuesday evening in London, which was 3:20 p.m. in Washington.  It’s the second contribution of the day from Patrik Ekdahl — and another link to it is here.

Emmanuel Macron bans RT and Sputnik. Is the Presidential hopeful out to kill free speech in France?

Emmanuel Macron has banned popular international media outlets RT and Sputnik from his campaign headquarters and his private events which most media sources are more or less automatically allowed to cover.

Macron’s campaign continually accuse both RT and Sputnik of spreading fake news,  but when Reuters asked Macron’s people to produce evidence of this, they refused to do so. The fact is that no such evidence exists.

People are allowed to disagree with the editorial policy of RT and Sputnik as much as one can disagree with that of CNN or BBC, but an all out ban in the self-proclaimed land of ‘Liberté, égalité, fraternité’ seems a bit dictatorial. Some would even say it is fascistic, the epithet which is so unfairly hurled at Macron’s opponent Marine Le Pen.

This article put in an appearance on Internet site early on Wednesday morning EDT — and I thank Roy Stephens for bringing it to our attention.  Another link to it is here.

China’s HNA becomes Deutsche Bank’s biggest shareholder

Chinese conglomerate HNA has overtaken Blackrock to become Deutsche Bank’s biggest shareholder after increasing its stake in the firm to nearly 10{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e}.

HNA became a major shareholder in Europe’s largest investment bank after acquiring a 4.8{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} stake in March.

Its financial unit, HNA Capital, reportedly has ambitions of becoming a global investment bank.

Earlier this year, the German lender abandoned plans to sell its Postbank unit and sold 8bn euros ($8.8bn) of shares instead.

HNA, which is privately run by billionaire Chen Feng, has been on a major acquisition spree in recent years.

Good luck to him!  This BBC news item was posted on their Internet site early on Wednesday morning BST — and it’s the third and final offering of the day from Patrik Ekdahl.  Another link to it is here.

Trump and Putin hold phone conversation: Cooperation against ISIS back on the table

President Putin also urged restraint over North Korea.

The conversations were serious in tone with both leaders pledging to maintain close contact with the other. Putin and Trump also said that the respective foreign ministers of each country, Sergey Lavrov and Rex Tillson will be in close contact with each other in order to bolster the fragile Syrian ceasefire.

Among the most important things discussed was possible coordination between Russia and the United States in the fight against Wahhabist terrorism in Syria. Cooperation between Washington and Moscow in the war against groups like ISIS was a central pillar of Trump’s campaign, but one apparently abandoned when Trump attacked Syria on the 6th of April, something which led to Vladimir Putin saying that U.S.-Russian relations had eroded under Donald Trump.

However, there have been recent signs that Donald Trump is turning away from militarism and back towards cooperation. The fact that U.S. troops are now acting as a buffer to prevent Turkish forces from firing on Kurdish SDF fighters in Syria is a sign that America has backed away from cooperation with Turkey in a would be war for regime change in Damascus.

This is another story from the Internet site.  This one appeared there on Tuesday sometime — and it’s the second contribution of the day from Roy Stephens.  Another link to it is here.

Russians want Putin for another Presidential term

There are other highly qualified candidates, but none with the record of President Putin.

Vladimir Putin has still not declared whether he intends to run in next year’s Russian Presidential election, but according to a recent poll by Russia’s Levada Centre, 64{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} of Russians want Putin to be President for another term. If Putin runs and wins in the 2018 election, he will remain in office until 2024, the same year Trump will leave office in the US should he seek and win another term in 2020.

The Levada poll also found that if elections were held tomorrow and Putin was running, 48{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} of those polled would cast their vote for the incumbent while Zhirinovsky and Zyuganov (listed as the Communist candidate in the poll) would both get roughly 3{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} of total votes. By contrast the second most popular option after Putin was ‘undecided’ at 19{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e}. 13{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} of those asked said that they did not plan to vote at all next year.

If Putin does in fact decide to run, he will almost certainly win. His record in government and his personal popularity at home and abroad means that even other qualified candidates will stand little chance of beating a man who Russians see as their best leader in a century.

Amen to that, bro’….  This is the last news item from Internet site — and it comes courtesy of Roy Stephens as well.  Another link to it is here.

Hayman’s Kyle Bass Sees Signs of Credit Crisis in China

Kyle Bass, Hayman Capital Management’s chief investment officer and managing partner, comments on the outlook for China’s economy during an interview with Bloomberg‘s Erik Schatzker at the Milken Institute Global Conference.

Kyle’s obvious short China in a big way.  This 2:56 minute video clip was posted in a Bloomberg article at 10:34 a.m. EDT on Tuesday morning — and I thank Richard Saler for pointing it out.

Swiss gold imports: anomalous suppliers — Lawrie Williams

We commented yesterday on the March Swiss gold export figures which confirmed India as the largest recipient of the gold from the Swiss refineries, which dominate global independent gold refining.  Hong Kong and China were the two other major recipients, while overall the Middle East and South and East Asia accounted for almost 88{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} of total Swiss gold exports, emphasising the continuing flow of gold from West to East. (See: March Swiss gold exports show India no.1 again).

As Switzerland produces no gold of its own, but specialises in re-refining LBMA good delivery gold bars and scrap gold into the metric and small sizes in demand in the East, it has to be a major gold importer to keep the refineries’ production going, as well as to supply its own investment demand and it is particularly interesting to review the sources of this gold for re-refining and exporting.

The biggest source of Swiss gold imports is usually the U.K., which is not surprising as London has traditionally been at the centre of the global gold trade, but some of the other sources of gold for the Swiss refineries are a little more unexpected.  After London the three biggest sources of imported gold are Hong Kong, the UAE (primarily Dubai), and the USA.  The latter is not surprising at all as it is the world’s fourth largest producer of new mined gold, but the UAE and Hong Kong have to be considered as highly anomalous sources as they both produce little or no gold of their own, but are traditionally gold traders. Next in line comes Thailand – again usually a gold importer rather than exporter.  Most of the remainder of the source nations for the Swiss gold imports are indeed gold producers as would be expected.

This very worthwhile commentary by Lawrie put in an appearance on the Sharps Pixley website on Wednesday — and another link to it is here.

Silver Bullion on Sale After 10.6{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} Fall in Two Weeks — Mark O’Byrne

– Silver down for eleven consecutive days to $16.80/oz
– Further weakness possible and support at $15.73/oz
– Never catch a falling knife – dollar cost average
– Silver buyers love manipulative futures selling
Thank you ‘Gold and Silver Cartel’ !

Of course it’s now twelve consecutive days thanks to JP Morgan et al.  This brief silver-related commentary from Mark showed up on the Internet site early on Wednesday morning BST in Dublin — and it’s worth skimming.


Here’s a bird that I’ve only seen once in my entire life — and that was in Edmonton about thirty years ago.  It’s a varied thrush…the American robin’s close cousin.  I heard its territorial call before I saw it — and when I did finally spot it, I knew what it was straight away, even though I’d only seen photos of it.  It sounded like a robin that had some sort of speech impediment.  It was a long way from its natural summer home, which is the mountains of western North America.  The click to enlarge feature only helps on the second photo.


My letter to the CFTC included this passage –  “Almost without fail, on every past occasion where the concentrated short position in COMEX silver futures reached extreme levels, it was only a matter of time before the price of silver gets rigged lower by these big shorts to induce speculative selling from traders operating on technical price signals. In fact, COT report data indicate that JPMorgan has never taken a loss, only profits on every silver short position it has added over the past nine years.  Such results would not be possible in a market that wasn’t manipulated in price. In essence, speculators have taken over the price discovery process in silver because there are so few real hedgers trading on the COMEX, only speculating banks betting against other speculative traders.”

Considering that several hundred individuals took the time to contact the CFTC on this matter, it is not possible for the agency to have failed to notice that silver prices were deliberately rigged lower just as advertised beforehand. The Commission’s own data confirm and will confirm that technical fund traders were the big sellers and the bank shorts, led by JP Morgan, were the big buyers on the recent price rout.  The necessary ingredients for manipulation were all present and accounted for – means, motive and opportunity.

Another undeniable conclusion is that JP Morgan has done it once again, namely, teamed up with the other big COMEX commercial shorts to rig silver prices lower and has begun to buy back recently added short positions with profits. Thus, a nine year perfect trading record has been extended and preserved. Nine years after taking over Bear Stearns, JP Morgan has established the perfect record in only buying back any added short positions in COMEX silver at a profit and never, ever at a loss. — Silver analyst Ted Butler: 03 May 2017

You certainly don’t need me to paint you a picture of what happened yesterday, as it was pretty much preordained as I laid it out in Wednesday’s missive.  Wait for “The Words” at 2:00 p.m….then ramp the dollar index…most likely by staging a short covering rally — and then pound the snot out of the precious metal prices using every dirty and illegal trick in the book, in order to get the Managed Money traders not only to puke up their long positions, but also go short as well.  It worked like a charm.  JP Morgan et al played the technical funds like a Stradivarius yesterday.  A re-read of Ted’s quote above would be very apropos right now.

Unfortunately, none of this data will be in tomorrow’s Commitment of Traders Report, because it occurred the day after the cut-off.

And, also unfortunately, the price action that really mattered in all four precious metals, plus copper, occurred after the 1:30 p.m. EDT COMEX close, so all the new low closes for this move down aren’t in the Wednesday dojis on the 6-month charts posted below.  They won’t show up until the charts are updated after the COMEX close later this afternoon.  But the price action they do show was bad enough.  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 see that the gold price rallied quietly in morning trading in the Far East on their Thursday.  But the powers-that-be appeared around 1:30 p.m. CST — and they have gold at a new low for this move down once again.  It has rallied off that low by a bit — and is only down $2.80 the ounce at the moment.  Silver was up 15 cents by 11:40 a.m. in Shanghai, but it’s been turned lower by ‘da boyz’ as well but, like gold, is off its current low — and up 2 cents.  Platinum was up 6 bucks until shortly after 12 o’clock noon CST, but after touching unchanged the same time as gold and silver turned higher, is now up a buck.  Palladium was up 4 dollars by 1 p.m. China Standard Time on their Thursday afternoon, but it’s been sold back to unchanged.

Net HFT gold volume is approaching 41,000 contracts — and that number in silver is astonishing…closing in on 17,000 contracts.  JP Morgan et al are hard at it.

The dollar index made it down to the 99.30 mark by noon CST — and then traded ruler flat until a few minutes after 2 p.m. over there — and then ‘skyrocketed’ from down 8 basis points, to up 8 basis points.  What a ‘rally’ that is!  Not much cover for ‘da boyz’ here, but they could care less, as there’s nobody to stop them…or prepared to say a word about it.

So, are they done yet, you ask?  Obviously not, when you look at the current price/volume activity in afternoon trading in the Far East earlier today.  Silver certainly looks like it’s done, but the fly that’s still in the ointment…as Ted pointed out…is gold.  Yesterday was the first day that it was closed below its 200-day moving average — and it remains to be seen how much lower ‘da boyz’ are going to hammer it from here.

As Ted mentioned in his weekly review on Saturday, his fear is that JP Morgan et al will use this gold hammer to continue to pound away at silver.  Is there anything left for them to get in silver?  Considering the volume by the London open this morning, the answer is a big ‘yes’.  That’s why Ted keeps saying that you only know for sure when the bottoms are in, is when you’re looking at them in the rear-view mirror.

But they do seem to be in some sort of hurry at this point in time.

So we wait some more.

And as I post today’s efforts on the website at 4:02 a.m. EDT, I see that the gold price has rallied a hair now that London has been open for an hour — and is down only $2.00 an ounce at the moment  Silver is up 5 cents — but platinum has rallied to up 7 bucks, which is now a dollar above its former high of the day in Shanghai.  Palladium has gone from down a dollar, to up 3 dollars.

Net HFT gold volume is coming up on 51,500 contracts — and that number in silver is a hair over 20,000 contracts, which is amazing!

The dollar index has gone from up 8 basis points, to down 6 basis points during the first hour of London/Zurich trading.

I’m not sure what to expect during the remainder of the Thursday trading session, but using the past as prologue…like yesterday for instance…I’d assume that the New York bullion banks will wait until the COMEX open before they really lay the lumber to the precious metal prices again…if that’s their plan.

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