More Salami Slicing on Tuesday

18 October 2017 — Wednesday

YESTERDAY in GOLD, SILVER, PLATINUM and PALLADIUM


Except for a slight pop at the 6:00 p.m. EDT on Monday evening, the powers-that-be had the gold price under steady selling pressure until they set the low of the day at 11:25 a.m. EDT in New York.  It bounced from there, but at precisely 2:30 p.m. in after-hours trading, it was turned quietly lower into the 5:00 p.m. close.

The high and low ticks were reported as $1,298.40 and $1,283.20 in the December contract.

Gold was closed in New York on Tuesday at $1,284.80 spot, down $9.70 on the day.  Not surprisingly, net volume was enormous at something under 315,000 contracts, as ‘da boyz’ closed gold well blow its 50-day moving average yesterday.

Here’s the 5-minute tick chart for gold, courtesy of Nick Laird.  There was pretty big volume on that engineered price decline that came shortly after the afternoon gold fix in Shanghai on their Tuesday afternoon, which was around 00:30 Denver time on the chart below.  It never really dropped back to background levels for long after that — and of course the big volume was in the COMEX trading session, culminating with the 12,000 contract volume spike on the low tick of the day around 9:25 a.m. MDT/11:25 a.m. EDT.  Volume only dropped off to background in the last forty-five minutes of trading before the close yesterday.

The vertical gray line is 10:00 p.m. Denver time, midnight in New York – and noon China Standard Time [CST] the following day in Shanghai-and don’t forget to add two hours for EDT. The ‘click to enlarge‘ feature is a must.

And as is almost always the case, JPMorgan et al guided the silver price lower in a similar manner, with the low tick coming at 11:15 a.m. EDT, which was about ten minutes before the low tick in gold.  It recovered back above the $17.00 spot mark by a few pennies but, like gold, that tiny rally was also turned aside starting at exactly 2:30 p.m. EDT.

The high and low ticks in this precious metal were recorded by the CME Group as $17.28 and $16.985 in the December contract.

Silver finished the Tuesday session at $16.995 spot, down 21 cents on the day.  Net volume was pretty heavy at around 84,000 contracts, as silver was closed firmly below both its 50 and 200-day moving averages yesterday.

And here’s the 5-minute silver tick chart courtesy of Brad as well.  There was some volume at the Shanghai gold fix yesterday afternoon CST when JPMorgan et al stepped into the market, but all the volume that really mattered occurred during the COMEX trading session — and by around 12:30 p.m. Denver time/2:30 p.m. in New York…volume evaporated.

Like for gold, the vertical gray line is 10:00 p.m. Denver time, midnight in New York — and noon China Standard Time [CST] the following day in Shanghai-and don’t forget to add two hours for EDT. The ‘click to enlarge‘ feature is a must here as well.

The platinum priced traded almost ruler flat up until minutes before 2 p.m. CST on their Tuesday afternoon.  There was a tiny blip to the downside at that juncture, but not nearly as pronounced as the ones that were handed out to silver and gold at that time — and by 10 a.m. in Zurich the price was back at unchanged.  It was sold down to its low tick of the day starting just before 1 p.m. CEST — and the low was set by ‘da boyz’ shortly after the COMEX open.  It chopped unsteadily higher after that until around 2:15 p.m. in after-hours trading — and traded flat from there into the 5:00 p.m. EDT close.  Platinum closed yesterday at $933 spot, up 3 dollars from Monday.

Palladium was up 7 bucks by shortly before 2 p.m. China Standard Time on their Tuesday afternoon — and after getting sold off a bit like the other three precious metals around 2 p.m. CST, it began to head unsteadily higher, with the $980 high tick being printed shortly after the afternoon gold fix in London.  It was sold down 10 dollars from there going into the COMEX close — and didn’t do a lot after that.  Palladium finished the day in New York yesterday afternoon at $970 spot — and up 7 dollars.

The dollar index closed very late on Monday afternoon in New York at 93.26 — and began to head higher as soon as trading began at 6:00 p.m. EDT on Monday evening a few minutes later.  There was an hour-long dip in that rally between the 8 and 9 a.m. in London, but the index kept powering higher after that — and topped out at the 93.73 mark at the afternoon gold fix in London.  It headed lower from there until a few minutes after 2 p.m. EDT — and traded pretty flat after that.  The index finished the Tuesday session at 93.49 — and up 23 basis points on the day.

Once again there wasn’t a lot of correlation between the dollar index and precious metal prices, as the index high came at 10 a.m. EDT in New York — and the low ticks in gold and silver, more than hour later.

And here’s the 6-month U.S. dollar index — and the last two days worth of engineered price declines have been based on the tiny rallies off its 50-day moving average.

The gold shares gapped down a bit more than a percent at the open yesterday morning in New York, but began to crawl steadily higher from that point — and were actually in positive territory by 2:20 p.m. EDT!  They couldn’t quite squeeze a positive close, however — and closed down 0.11 percent.  Someone was doing some serious bottom fishing yesterday.

Unfortunately, the silver equities didn’t do as well.  After gapping down immediately, they did rally a bit going into the afternoon gold fix in London, but fell to their respective lows around 11:15 a.m. EDT when JPMorgan et al set silver’s low tick of the day.  They crawled quietly, but evenly higher from there — and Nick Laird’s Intraday Silver Sentiment/Silver 7 Index closed down 1.25 percent.  Click to enlarge if necessary.

And here’s the 1-year Silver Sentiment/Silver 7 Index chart.  Click to enlarge.

Although they didn’t fare as well as the gold shares, considering how badly silver got beaten up yesterday, down only that amount felt like a win!  However, having said that, all of October’s gains in the silver equities are now history as of the close of trading yesterday.


The CME Daily Delivery Report showed that 82 gold and 42 silver contracts were posted for delivery within the COMEX-approved depositories on Thursday.  In gold, JPMorgan and R.J. O’Brien were the only two short/issuers, with 49 and 33 contracts out of their respective client accounts.  There were eight long/stoppers in total — and the three largest were JPMorgan, Scotiabank and Morgan Stanley with 42, 13 and 11 contracts.  Except for Scotiabank, these contracts were delivered into JPMorgan and Morgan  Stanley’s respective client accounts.  In silver, it was all client account-associated issuer and stopper activity.  The three largest short/issuers were ABN Amro, International F.C. Stone and ADM, with 15, 12 and 12 contracts respectively.  Of the six long/stoppers HBSC USA, ABN Amro and JPMorgan were the three largest, with 20, 12 and 9 contracts respectively.  The link to yesterday’s Issuers and Stoppers Report is here.

The CME Preliminary Report for the Tuesday trading session showed that gold open interest in October rose by 184 contracts, leaving 502 still open, minus the 82 gold contracts mentioned above.  Monday’s Daily Delivery Report showed that only 1 gold contract was posted for delivery today, so that means that 1+184=185 more gold contracts were added to the October delivery month.   Silver o.i. in October declined by 134 contracts, leaving 267 still around, minus the 42 contracts mentioned in the previous paragraph.  Monday’s Daily Delivery Report showed that 166 silver contracts were posted for delivery today, so that means that another 166-134=32 silver contracts got added to October.

So far in October there have been 2,436 gold contracts issued and stopped — and in silver, that number is 776.


There were no reported changes in either GLD or SLV yesterday.

There was a tiny sales report from the U.S. Mint yesterday.  They sold 1,000 troy ounce of gold eagles — and that was all.

There was almost no activity in gold over at the COMEX-approved depositories on the U.S. east coast on Monday.  Nothing was reported received — and only 1,286.000 troy ounces/40 kilobars [U.S./U.K. kilobar weight] were shipped out of Canada’s Scotiabank.  I won’t bother linking this amount.

It was much busier in silver, as 950,014 troy ounces were reported received, but only 22,997 troy ounces were shipped out the door for parts unknown.  A truck load…599,471 troy ounces…was dropped off at CNT — and 350,543 troy ounces was deposited at Delaware.  In the ‘out’ category, there was 20,005 troy ounces shipped out of HSBC USA — and another 2,992 troy ounces from Delaware.  There was also a paper transfer of 721,045 troy ounces from the Eligible category — and into Registered — and that happened over at CNT.  The link to all this action is here.

It was fairly quiet over at the COMEX-approved gold kilobar depositories in Hong Kong on their Monday.  There were only 324 received — and only 499 shipped out.  All of this activity was at Brink’s, Inc. — and I won’t bother link it, either.

It was another pretty quiet day from a news perspective, but I do have an average number of stories for you today.


CRITICAL READS

Our Plan to Save the Ranch/Fanning the Flames/Hysterical Men With Guns — Bill Bonner

In the world of money and politics, on the other hand, you need a psychiatrist or a lunatic to understand what is going on.

It is a world full of hysteria and delusion. Sometimes hysteria just happens; often, people make it happen.

Today, central banks, the mainstream media, the feds, and crony Deep State industries have raked the coals and fanned the flames.

Why?  Because it pays.

Over the last 17 years, central banks have pumped about $20 trillion worth of financial Viagra into the system. That’s the amount of additional “assets” (bonds mainly, but also stocks) they’ve acquired with money that never previously existed.

All that extra money provided “The Swamp” with the funding it wanted. The “security” industry, headquartered in Northern Virginia, for example, flourished.

This must read commentary by Bill showed up on his website on Monday — and I thank Dave Stirling for sending it our way.  Another link to it is here.


Washington is Destroying American Power — Paul Craig Roberts

The U.S. dollar’s value depends on whether central banks, corporations, and individuals are content to hold their assets or wealth in dollars. If they are, it does not matter what currency is used to transact oil. If they are not, it does not matter if all oil is transacted in dollars. Why?

Because if they don’t want to hold dollars, they will dump the dollars as soon as the transaction is completed and move into other currencies or gold. What China is doing is creating a currency that might be a more attractive currency to hold.

It is possible that the gold-backed Chinese currency is a move against U.S. power, but I see it differently. I see it as a protection against U.S. power. China and Russia are disassociating from the dollar system, because Washington, in its abuse of the world currency role, uses the dollar payments mechanism to impose sanctions on other countries and to threaten them with exclusion from the payments clearing system.

In other words, Washington, instead of operating a fair system, uses its world currency role to dominate other countries. Russia and China are too strong to be dominated, and, thus, are throwing off the dollar system. If other countries follow, the dollar will cease to be an instrument of U.S. control over the rest of the world.

To put it in different words, Bretton Woods gave Washington the responsibility for the world financial system. Washington abused the power entrusted to it by using the dollar system to destabilize other countries, such as Venezuela currently. Washington’s abuse of the world currency role in order to advance American financial and business interests and Washington’s power over the foreign and domestic policies of other countries has set in motion forces that will eliminate the dollar’s role as world reserve currency.

The hubris and arrogance of Washington are destroying American power.

This short, but very worthwhile commentary by Paul showed up on his Internet site on Tuesday sometime — and it comes to us courtesy of Vicki Lim.  Another link to it is here.


The United States of Weinstein: Complicity, Greed and Corruption is the Status Quo — Charles Hugh Smith

The sordid story of Harvey Weinstein is being presented as an aberration. It is not an aberration; it is merely a high-profile example of how the status quo functions in the USA, a.k.a. The United States of Weinstein, in which complicity, greed and corruption reign supreme in every sector and in every nook and cranny of power.
The dirty secret of America’s status quo is that power and wealth are both extremely concentrated, which means there are gatekeepers who must be bribed, sated or serviced if you want to claw your way up the wealth-power pyramid. Mr. Weinstein’s alleged conduct and payoffs of those he exploited is par for the course in the corridors of power in the USA.
As a gatekeeper in Hollywood, Mr. W. could make or break careers with absurd ease.

Gatekeepers are the key functionaries in a rentier economy in which the few at the top skim the wealth of the many. Want to play in the big leagues of Hollywood, Washington D.C., the Pentagon, or the various HQs of Global Corporate America? You have to pay the Gatekeepers what they demand.

It might be the casting couch or a slice of the profits, or a vote in committee, but the price of admission will always include complicity–silence about the crimes committed and the endemic corruption, and a sacrifice of moral standards. This is the minimal price of “success” in the elite circles of wealth and power in America.

If you doubt this, dig deep into any concentration of power in America and see what you find. Outsiders won’t find anyone willing to talk, of course; that’s how complicity works.

And as you already know, dear reader, it works equally well in the precious metal market. You’ll get no disagreement from me about anything that Charles has to say in this extremely well-written essay on this issue…his second in less than a week.  It certainly falls into the absolute must read category — and it’s something I found on the Zero Hedge website.  I thank Brad Robertson for pointing it out — and another link to it is here.


CIA urges POTUS Trump to delay release of 3,000 never-before-seen documents on assassination of John F. Kennedy

More than 3,000 never-before-seen documents from the FBI, CIA, and Justice Department are set to be released, along with 30,000 that have only been partially released in the past. The document dump “will simply fuel a new generation of conspiracy theories,” write Philip Shenon and Larry J. Sabato.

Sabato is the director of the University of Virginia Center for Politics and author of “The Kennedy Half-Century” and Shenon is a former reporter for The New York Times and author of, “A Cruel and Shocking Act: The Secret History of the Kennedy Assassination.”

The CIA is urging President Donald Trump to delay disclosing some of the files for another 25 years according to friend and political adviser Roger Stone but the National Archives would not say whether any agencies have appealed the release of the documents.

According to The Gateway Pundit Roger Stone and Gerald Posner, two New York Times bestselling authors who are polar opposites about who killed JFK, have joined together to urge Donald Trump to release all the remaining classified files on Kennedy’s assassination.

Of course anyone with half a brain — and of a certain vintage, has figured out in the interim that, like 9/11, the Kennedy assassination was just another operation courtesy of the ‘Deep State’  –and it’s a possibility that these yet-to-be released documents may indicate that.  This story was posted on theduran.com Internet site at 4:26 p.m. EDT on Tuesday afternoon — and I thank Roy Stephens for sending it along.  Another link to it is here.


Theresa May’s Government Fears Imminent Collapse of Brexit Negotiations

Following Theresa May’s dinner with Jean-Claude Juncker in Brussels, we have a promise that both sides are committed to accelerating Brexit negotiations…except nobody actually believes that.

Apart from the “bear hug” that Juncker gave Britain’s Brexit Secretary, David Davis, as they went their separate ways, there is no evidence that relations are any more cordial, or that any tangible progress was made in breaking the deadlock.

Rather than no progress, however, Bloomberg is reporting that the U.K. government sees the potential for the negotiations to collapse after this week’s E.U. Summit. “U.K. Prime Minister Theresa May’s government fears Brexit talks will break down unless the European Union gives ground at a key summit this week, according to a person familiar with her team’s views. Without a clear sign that negotiations will progress to trade and transition arrangements by December at Thursday’s summit of E.U. leaders, the entire Brexit process will be in danger of collapse.

Mrs May made a telephone call on Sunday to the one person, Merkel, who could have softened the E.U.’s stance ahead of the dinner. Consequently, we were not surprised to learn that now “senior British ministers are losing faith in the E.U.’s willingness to strike a deal, the person said.

As we’ve said before, it still boils down to money and the E.U. is not shifting until the two sides can agree on a number.

The growing problem for Mrs May is that she now has little room to maneuver due to the weakness of her own position. The source in Mrs May’s team told BloombergMay took a political risk by promising to pay into the E.U. budget and settle the divorce bill in a speech in Florence, Italy, last month and now needs something in return for before she can make concessions.”

This very interesting news item appeared on the Zero Hedge website at 6:09 a.m. EDT on Tuesday morning — and I thank Brad for this article as well.  Another link to it is here.


Spain Constitutional Court Declares Catalan Referendum Void

While it will not come as a surprise to anyone following ongoing events in Spain, moments ago the country’s Constitutional Court said on Tuesday the referendum law passed by the Catalan government Sept. 6 to hold a vote on independence was unconstitutional and void, a spokesman said. The court’s full statement can be found here, while the opinion is at this link.

The court had originally suspended the referendum law as it studied its legality, though the Catalan government went ahead with the ballot regardless.

According to the Court, the Catalan legislation, approved by the region on Sept. 6 and suspended by the court the following day, usurped powers of the State to hold referendums. It also violated the principle that the Spanish nation is indissoluble.

In other words, this is the definitive confirmation from Spain that any Catalan separation is not possible, nor legal.

And with Spain having extended the ultimatum given to Catalan leader Puigdemont to definitively clarify his stance on the declaration of independence through Thursday, the separatist leader finds himself increasingly trapped, as a response will either prompt a crackdown by Spain or a blowback from other pro-independence groups inside Catalonia.

This is yet another Zero Hedge story from Brad from yesterday.  It was posted on their website at 8:52 a.m. EDT — and another link to it is here.


President Trump Beats War Drums For Iran — Ron Paul

President Trump has been notoriously inconsistent in his foreign policy. He campaigned on and won the presidency with promises to repair relations with Russia, pull out of no-win wars like Afghanistan, and end the failed U.S. policy of nation-building overseas. Once in office he pursued policies exactly the opposite of what he campaigned on. Unfortunately Iran is one of the few areas where the president has been very consistent. And consistently wrong.

In the president’s speech last week he expressed his view that Iran was not “living up to the spirit” of the 2015 nuclear agreement and that he would turn to Congress to apply new sanctions to Iran and to, he hopes, take the U.S. out of the deal entirely.

Nearly every assertion in the president’s speech was embarrassingly incorrect. Iran is not allied with al-Qaeda, as the president stated. The money President Obama sent to Iran was their own money. Much of it was a down-payment made to the U.S. for fighter planes that were never delivered when Iran changed from being friend to foe in 1979. The president also falsely claims that Iran targets the United States with terrorism. He claims that Iran has “fueled sectarian violence in Iraq,” when it was Iranian militias who prevented Baghdad from being overtaken by ISIS in 2014. There are too many other false statements in the president’s speech to mention.

How could he be so wrong on so many basic facts about Iran? Here’s a clue: the media reports that his number one advisor on Iran is his Ambassador to the U.N., Nikki Haley. Ambassador Haley is a “diplomat” who believes war is the best, first option rather than the last, worst option. She has no prior foreign policy experience, but her closest mentor is John Bolton – the neocon who lied us into the Iraq war. How do these people live with themselves when they look around at the death and destruction their policies have caused?

This worthwhile commentary by Ron put in an appearance on his Internet site on Monday — and it’s another article I found on the Zero Hedge website that comes to us courtesy of Brad Robertson.  Another link to it is here.


Is War With Iran Now Inevitable? — Patrick Buchanan

Indeed, if Iran wanted a bomb, Iran would have had a bomb.

She remains a non-nuclear-weapons state for a simple reason: Iran’s vital national interests dictate that she remain so.

As the largest Shiite nation with 80 million people, among the most advanced in the Mideast, Iran is predestined to become the preeminent power in the Persian Gulf. But on one condition: She avoid the great war with the United States that Saddam Hussein failed to avoid.

Iran shut down any bomb program it had because it does not want to share Iraq’s fate of being smashed and broken apart into Persians, Azeris, Arabs, Kurds and Baluch, as Iraq was broken apart by the Americans into Sunni, Shiite, Turkmen, Yazidis and Kurds.

Tehran does not want war with us. It is the War Party in Washington and its Middle East allies — Bibi Netanyahu and the Saudi royals — who hunger to have the United States come over and smash Iran.

This absolute must read commentary by Pat was posted on his website at 9:03 a.m. EDT on Tuesday morning — and I found it over at the Zero Hedge Internet site.  Another link to it is here.


Iraqi Kurd Army Agrees to Return to 2003 Border, Oil Slides

In a dramatic de-escalation of recent hostilities in Iraqi Kurdistan, where in a blitz campaign the Iraqi army was able to recapture Kirkuk , effectively regaining control of the oil-rich region, the Kurdish Peshmerga forces, i.e. the army of the autonomous region of Iraqi Kurdistan told Sky News Arabia that it has agreed to return to the 2003 Iraq border, which if confirmed would be a major concession to Iraq which has been pushing for just this conclusion for the past month.

The opportunistic Kurdistan Regional Government increased its territory by at least 40{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} during the war with Islamic State, bringing many of these disputed areas under its control after the Iraqi army withdrew in the face of advancing ISIS militants. However, as Iraqi forces and pro-govt militias have already regained control of many of these areas, including Kirkuk, over the past 48 hours, the Iraqi Kurdistan region had no other choice. According to the Kurdish news service Rudaw, the pre-2003 borders “exclude disputed areas such as Kirkuk, Khanaqin, Tuz Khurmatu, Makhmour, and Zumar from the Kurdistan Region.”

Incidentally, at the start of September, Rudaw reported that Baghdad wants the Kurdistan Region to withdraw from disputed areas and return to pre-2003 borders between the autonomous region and Iraq, said Kurdistan President Masoud Barzani. At the time Barzani vowed that the Peshmerga will not retreat from any areas that were taken “with the blood of fallen soldiers.” It took one month for him to change his tune.

Barzani said at the time that the planned independence referendum can work as a peaceful tool to settle outstanding issues between Erbil and Baghdad. In retrospect it turned out to be an epic disaster for the Kurdish autonomous region, which is about to lose a substantial portion of its territories.

This is yet another Zero Hedge article that’s also courtesy of Brad Robertson.  It was posted on their Internet site at 11:58 a.m. on Tuesday morning EDT — and another link to it is here.


Goldman Sachs Says Gold Is Better Than Bitcoin

Gold wins out over cryptocurrencies when assessed on the majority of the key characteristics of money, according to Goldman Sachs Group Inc., which adds that fear and wealth are the core drivers of bullion.

Precious metals remain a relevant asset class in modern portfolios, despite their lack of yield,” analysts including Jeffrey Currie and Michael Hinds wrote. “They are neither a historic accident or a relic.” Looking at properties such as durability and intrinsic value, they are still relevant even with new materials discovered and new assets emerging, such as cryptocurrencies, they said.

Investors boost the amount of gold in their portfolio as uncertainty increases, making fear the key medium to short-run driver, Goldman said. Wealth is the long-term driver, especially in emerging markets such as China, where growing income levels over the next few decades will support prices, it said in a report.

This tiny Bloomberg story showed up on their website at 5:13 a.m. MDT on Monday morning — and I found it embedded in a GATA dispatch.  Another link to it is here.


2017 Gold Panel :: Rick Rule, Doug Casey, Nick Hodge, Brien Lundin

In anticipation of the 2017 New Orleans Investment Conference, Rick Rule assembled a distinguished panel to discuss the state of the gold market and opportunities in mining stocks.

This 49:52 minute video interview with a line-up of mostly ‘one-percenters’ was posted on the marketsanity.com Internet site on Tuesday sometime — and of course there’s not a word spoken about the short positions of the ‘Big 8’ traders in the COMEX futures market in all four precious metals.  It’s bad for their business, don’t know you know.  I didn’t watch all of it — and I thank Judy Sturgis for sending it our way.


Gold: Higher Highs and Lower Lows — Jim Rickards

Gold could be in a long-term trend right now that spells dramatically higher prices in the years ahead.

Of course, this new trend is less than a year old and is not deterministic. Still, it is an encouraging sign when considered alongside other bullish factors for gold.

We’re seeing a persistent excess of demand over new supply. China and Russia alone are buying more than 100{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} of annual output each year.

Private holders are keeping their gold as well. On a recent visit to Switzerland, I was informed that secure logistics operators could not build new vaults fast enough and were taking over nuclear-bomb-proof mountain bunkers from the Swiss Army to handle the demand for private storage.

With gold sellers disappearing and large demand continuing, the price will have to go up to clear markets.

I think Jim meant to say “higher highs and higher lows”…but I can’t be sure.  This commentary by Jim put in an appearance on the dailyreckoning.com Internet site yesterday — and I thank Brad Robertson for sharing it with us.  Another link to it is here.


Hugo Salinas Price TV Interview

Hugo Salinas Price, president of the Mexican Civic Association for Silver, was interviewed on television in Mexico on Saturday about his proposal for Mexico’s central bank to issue an undenominated silver coin whose price in pesos would be guaranteed by the bank not to fall.

Such a coin, Salinas Price explained, would provide a practical savings vehicle for ordinary Mexicans. It also would monetize a natural resource in which Mexico surpasses the world and thereby strengthen the nation’s sovereignty.

Salinas Price said legislation for such a coin has been introduced in Mexico’s Congress but the central bank will oppose it.

The interview, in English, is 17 minutes long and can be viewed at the association’s internet site plata.com.mx — and another link to it is here.  It was something I found on the gata.org Internet site last night EDT — and it’s definitely worth your time.


The PHOTOS and the FUNNIES

Three more photos from Deadwood.  In the second shot we’re on our way up that set of stairs in the background to see what some of the residential area looks like — and the third photo is taken at the top of the stairs looking north down the street which, according to Google Earth, is Williams Street.  The ‘click to enlarge‘ feature only helps with the third photo.


The WRAP

JPMorgan et al set new intraday lows in three of the four precious metals, with palladium being the outlier.

Although some will say it was dollar index related, I beg to differ, as the rally in the dollar index topped out at the afternoon gold fix in London.  That was actually palladium’s high tick of the day — and platinum’s low tick came shortly after the COMEX open…and silver at 11:15 a.m. and gold ten minutes after that.  What the dollar index is doing is irrelevant when ‘da boyz’ are mucking about in the COMEX futures market.  But, like on Monday, they usually hide behind the dollar index moves as they do they dirty.  Not yesterday, for whatever reason.

Here are the 6-month charts for all four precious metals — and you can see how much progress JPMorgan et al made in the salami-slicing department.  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 inched higher until shortly after 10 a.m. China Standard Time on their Wednesday morning.  From there it headed equally quietly lower — and is down $1.80 the ounce currently.  It was the same price path for silver, except JPMorgan et al smacked it ten minutes before the London open, setting a new intraday low for this move down in the process.  It’s off that low tick by a bit — and is down 2 cents at the moment.  Platinum didn’t do much of anything…trading pretty flat until minutes after 1 p.m. CST — and it’s been sold lower as well — and is currently down 5 bucks.  Palladium was up 8 bucks by minutes after 10 a.m. CST, but about half of those gains were taken away by noon over there — and it’s up 5 dollars as the Zurich open approaches.

Net HFT gold volume is coming up on 47,000 contracts — and that number in silver is about 8,500 contracts.

The dollar index was sold lower by about 8 basis points in the first two hours of trading once it began at 6:00 p.m. EDT yesterday evening in New York.  It’s been chopping quietly higher since — and is up 4 basis points as London opens.

Yesterday, at the close of COMEX trading, was the cut-off for this Friday’s Commitment of Traders Report — and with the up/down price shenanigans through 50 and 200 day moving averages, I’m not about to stick my neck out on what Friday’s numbers might show in either gold or silver.  Ted has his mid-week review for his paying subscribers later this afternoon — and I’ll be more than interested in what he has to say about it.  And as I usually do, I’ll steal a sentence or two for my Friday missive.

And as I post today’s column on the website at 4:02 a.m. EDT, I note that not much happened with precious metal price during the first hour of trading in London and Zurich.  Gold is currently down $2.40 an ounce, silver is down 4 cents — and platinum is down 7 dollars now.  Palladium’s gains continue to shrink, as it’s only up 2 bucks at the moment.

Gross gold volume is something over 57,000 contracts — and net of what tiny roll-over/switch volume there is, net volume checks in at something over 56,000 contracts.  Net HFT volume in silver is now up to 10,800 contracts.

The ‘rally’ in the dollar index came to an end right at the London open…precisely 8:00 a.m. BST on their Wednesday morning.  It sold off a bit from there — and was back at unchanged briefly, but has rallied a hair in the last few minutes — and is up 5 basis points.

I must admit that I was expecting the powers-that-be to be far more aggressive in their salami slicing — and I’m not sure if they’re not able to, or are just biding their time.  Besides the Big 8 trying to dig themselves out of their huge short position by purchasing long contracts and covering short positions, they have lots of traders in other categories that are attempting to do the same thing…so the competition for their food supply, courtesy of the brain-dead Managed Money traders, is pretty ferocious.

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

Ed