Another Busy Day for “Da Boyz”

15 November 2017 — Wednesday

YESTERDAY in GOLD, SILVER, PLATINUM and PALLDIUM


The gold price was quietly sold down two dollars by minutes after 11 a.m. China Standard Time on their Tuesday morning — and then didn’t do much until the London open.  The ‘da boyz’ pulled their bids, spun their algos — and in seconds we had another one of those cutesy waterfall declines on our hands.  From that point the gold price began to chop higher, but ran into a willing seller at the COMEX open, with the New York low coming at 9 a.m. EST.  It rallied a dollar or so into the afternoon gold fix from there — and then took off to the upside.  That NASA-type space launch was brutally capped on enormous volume.  It crawled higher from 10:20 a.m. onwards — and the high tick of the day came a minute or so after the COMEX close.  From that juncture, it drifted quietly lower until 4:00 p.m. in the after-hours market, before trading flat into the 5:00 p.m. EST close of trading.

The low and high ticks, which are barely worth looking up, were reported by the CME Group as $1,269.70 and $1,283.80 in the December contract.

Gold was closed in New York on Tuesday at $1,279.80 spot, up $1.90 from Monday.  Net volume was over the moon once again at something under 314,000 contracts.  Roll-over/switch volume out of December was pretty decent.

Here’s the 5-minute tick chart for gold, courtesy of Brad Robertson as usual.  I’m only including it so you can see the absolutely monstrous volume that ‘da boyz’ had to throw at the post-afternoon gold fix price rally to kill it stone-cold dead.  The other big volume spikes were on the waterfall decline at the London open.

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.

The silver price was stair-stepped lower [and back below $17 spot] until around 11:30 a.m. CST on their Tuesday morning.  It traded flat until a minute or so after 3 p.m. CST — and rallied back above the $17 spot mark by a few pennies.  The waterfall decline at the London open knocked a dime or so off the price — and from there it was forced to follow a similar price path as gold, complete with the tiny price spike at the afternoon gold fix at 10 a.m. in New York.  Also like gold, its high tick of the day came a minute or so after the COMEX close — and you know the rest.

The low and high ticks in this precious metal were reported as $16.86 and $17.095 in the December contract.

Silver was closed on Monday at $17.00 spot — and down 3.5 cents on the day.  Net volume was fairly decent at a bit over 60,000 contracts — and roll-over/switch volume out of December was pretty hefty.

Here’s the 5-minute tick chart for silver, courtesy of Brad R. as well — and I’m posting it for the same reason…so you can see just how much paper silver that JPMorgan et al had to throw at the price to make it behave at the afternoon gold fix.

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 as well.

The platinum price sagged a bit during morning trading in the Far East — and was down a dollar by the time the Zurich open rolled around.  It was only hit for 3 dollars at that juncture — and was back at unchanged by the COMEX open.  ‘Da boyz’ sold it lower until the low tick was set shortly after the Zurich close.  From that low, it rallied until about 2 p.m. in after hours trading, but a few dollars of that was taken away by the 5 p.m. close.  Platinum finished the Tuesday session in New York at $924 spot — and down 7 bucks on the day.

The palladium price flopped and chopped higher until the Zurich open — and at that point it was up about 8 bucks.  But by the time JPMorgan et al were through with it, it was down 12 bucks at its low tick of the day, which came shortly before the Zurich close.  It gained a whole bunch of that back by around 3:50 p.m. in the thinly-traded after-hours market, but was sold down a few dollars from there, before trading flat into the close.  Palladium closed in New York yesterday at $981 spot, down 3 dollars from Monday.

The dollar index closed very late on Monday afternoon in New York at 94.52 — and chopped quietly sideways until a minute or two before 3 p.m. China Standard Time on their Tuesday afternoon.  At that juncture, the long and steady decline began, which lasted until around 12:15 p.m. in New York.  Then the decline really became serious — and it certainly appeared as if the usual ‘gentle hands’ showed up a minute or so after  1 p.m. EST at the 93.75 mark, which was its low of the day.  From there it crawled very quietly higher until the close.  The dollar index finished the Tuesday session at 93.83 — and down 69 basis points from Monday.

Once again it was obvious that the powers-that-be were not going to allow this decline in the dollar index to be reflected in precious metal prices.  This has been going on since the beginning of the year.

And here’s the 6-month U.S. dollar index — and you can read into it whatever you wish, dear reader.

The gold shares gapped down a bit at the open yesterday morning in New York — and their respective low ticks were in by a few minutes before the afternoon gold fix in London.  They rallied back to the unchanged mark on the price spike in gold that occurred at that juncture — and then didn’t do much until 1 p.m. in New York. Then they shot up to their highs of the day, such as they were, but began a slow slide from there — and back into negative territory by a whisker at the close, as the HUI finished down 0.07 percent on the day.

The price path for the silver equities was mostly similar to what happened to the gold stocks.  However, that similarity came to an end once their high ticks were in for the day, which was around 1:20 p.m. EST.  They began to sell off rather precipitously at that point — and were down about 2 percent from their highs by 3:30 p.m.  They caught a bit of a bid at that juncture — and finished off their lows by a bit, as Nick Laird’s Intraday Silver Sentiment/Silver 7 Index closed down another 1.09 percent.  Click to enlarge if necessary.

You have to wonder who would be selling so aggressively considering the fact that silver only closed a nickel or so off its high tick of the day.  I know I am.

Here’s the 1-year Silver Sentiment/Silver 7 Index.   Click to enlarge.

The CME Daily Delivery Report showed that 18 gold and 1 silver contract were posted for delivery within the COMEX-approved depositories on Thursday.  In gold, the only short/issuer that mattered was Macquarie Futures with 16 contracts out of its in-house/proprietary trading account.  There were six long/stoppers in total — and the largest was JPMorgan with 8 contracts for its client account.  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 November remained unchanged at 71 contracts for the second day in a row, minus the 18 mentioned just above.  Monday’s Daily Delivery Report showed that zero gold contracts were posted for delivery today, so that jibes with the lack of change in open interest.  Silver o.i. in November declined by 1 contract, leaving 2 left, minus the 1 contract mentioned in the previous paragraph.  Monday’s Daily Delivery Report showed that 2 silver contracts were posted for delivery today, so that means that 2-1=1 more silver contract was added to the November delivery month.


There were no reported changes in either GLD or SLV — and there was no sales report from the U.S. Mint, either.

There was a bit of gold movement over at the COMEX-approved gold depositories on the U.S. east coast on Monday.  Nothing was reported received — and 21,364 troy ounces were shipped out.  There was 16,735 troy ounces from JPMorgan’s vault — and the remaining 4,629.600 troy ounces/144 kilobars [U.K./U.S. kilobar weight] departed Canada’s Scotiabank.  The link to that activity is here.

It was pretty busy in silver, as 900,930 troy ounces were received — and 585,448 troy ounces shipped out.  In the ‘in’ category, there was one truck load…599,277 troy ounces…dropped off at CNT — and the other 301,653 troy ounces ended up at Delaware.  In the ‘out’ department, there was one load…563,275 troy ounces…that left Scotiabank — and most of the balance…21,245 troy ounces…departed Brink’s, Inc.  Delaware shipped out one good delivery bar…927.300 troy ounces.  The link to this is here.

There was some activity over at the COMEX-approved gold kilobar depositories in Hong Kong on their Monday.  They received 921 — and shipped out 795.  All this occurred at Brink’s, Inc. of course — and the link to that, in troy ounces, is here.


Here’s a picture I borrowed from a gold-related story over at the Sputnik News website last week. It’s a good delivery bar from some Russian refinery.  Very pretty — and that 12,002.9 gram weight works out to 373.3 troy ounces.  It’s even more fabulous looking when you ‘click to enlarge‘.

I have an average number of news items for you today — and I hope you’ll find a few that interest you.


CRITICAL READS

One of the World’s Biggest Funds Is Slashing Its Exposure to Stocks

The California Public Employees’ Retirement System, the largest U.S. pension fund, is considering more than doubling its bond allocation to reduce risk and volatility as the stock bull market approaches nine years.

Calpers is looking at a menu of options for its fixed-income target ranging from the current 19 percent to as much as 44 percent, according to a presentation for a board workshop in Sacramento coming up Monday. Equities could be cut to as little as 34 percent from 50 percent. Stocks were the best-performing asset class in fiscal 2017, returning almost 20 percent.

The markets have had a pretty good run and it’s possible Calpers staff is thinking this might be a good time to lock in some of the gains,” Keith Brainard, research director for the National Association of State Retirement Administrators, said in a phone interview.

Calpers oversaw $342.5 billion in assets as of Nov. 10, up about 13 percent this calendar year on a combination of returns and contributions from employees and taxpayers. The fund lost money in past bear markets, including about 25 percent in the 12 months through June 2009 and 7 percent in fiscal 2001.

A very wise move, but bonds aren’t the answer either.  All they’re doing is exchanging one losing asset for another losing asset.  This Bloomberg article was posted on their Internet site at 7:00 a.m. Denver time on Monday morning — and was updated about 11 hours later.  I found it in yesterday’s edition of the King Report.  Another link to it is here.


Dr. Dave Janda interviews your humble scribe

This 25-minute audio interview with the good doctor was conducted on Sunday afternoon on all-talk radio WAAM 1600 out of Ann Arbor, Michigan — and posted on the davejanda.com Internet site.


Venezuela’s Bondholder Meeting Is a Bust as S&P Declares Default

Venezuela’s grand gathering with creditors Monday lasted all of 30 minutes and didn’t produce anything of substance. To make matters worse, S&P Global Ratings declared the country in default while Fitch Ratings cited missed payments by the state oil company prompting a fresh selloff in the nation’s bonds.

The actions from the ratings companies came after an odd spectacle in Caracas, where bond investors who made the trek found a red-carpet welcome, an honor guard salute and gift bags stuffed with state-produced chocolate and coffee. Fewer than 100 creditors showed up at the downtown Caracas office building, and at least one hightailed it out after realizing that two government officials sanctioned by the U.S. were in attendance, fearful of violating rules governing interactions with them.

He didn’t miss much. Very little was announced and nothing was resolved, according to attendees who said they left just as confused about the government’s intentions as they were going in. Vice President Tareck El Aissami was the only official to speak, and devoted most of his prepared remarks to railing against Donald Trump and global financiers who he said have conspired to keep the country from making debt payments on time. He pledged the nation would continue to honor its obligations and work with bondholders to find new ways to get them their money, but offered no concrete proposals for restructuring.

This Bloomberg news item was posted on their Internet site at 8:04 a.m. Denver time on Monday evening — and was updated about twelve hours later.  I thank Brad Robertson for sending it along — and another link to it is here.


E.U. planning for collapse of Brexit talks, says Michel Barnier

The EU’s chief Brexit negotiator, Michel Barnier, has said the bloc is drawing up contingency plans for the possible collapse of Britain’s departure talks.

Barnier, who last week gave the U.K. a two-week deadline to provide greater clarity on the financial settlement it was prepared to offer as part of the divorce deal, told France’s Journal du Dimanche newspaper the failure of the talks was not his preferred option.

But it’s a possibility,” he said. “Everyone needs to plan for it, member states and businesses alike. We too are making technical preparations for it. On 29 March 2019, the United Kingdom will become a third country.”

The remarks came as Theresa May faces increasing pressure at home, with Tory and Labour MPs warning she risks a Commons defeat over Brexit within weeks if she continues to deny parliament a meaningful vote on the final deal with the E.U.

This news item showed up on theguardian.com Internet site at 1:43 p.m. GMT on Sunday afternoon, which was 8:43 a.m. in Washington — EDT plus 5 hours.  It’s the second story of the day that I plucked from Tuesday’s edition of the King Report — and another link to it is here.


Protect Your Savings – ECB Proposes End to Deposit Protection

It is the ‘opinion of the European Central Bank‘ that the deposit protection scheme is no longer necessary: ‘covered deposits and claims under investor compensation schemes should be replaced by limited discretionary exemptions to be granted by the competent authority in order to retain a degree of flexibility.’

To translate the legalese jargon of the ECB bureaucrats this could mean that the current €100,000 (£85,000) deposit level currently protected in the event of a bail-in may soon be no more.

But worry not fellow savers as the ECB is fully aware of the uproar this may cause so they have been kind enough to propose that: “…during a transitional period, depositors should have access to an appropriate amount of their covered deposits to cover the cost of living within five working days of a request.

So that’s a relief, you’ll only need to wait five days for some ‘competent authority’ to deem what is an ‘appropriate amount‘ of your own money for you to have access to in order eat, pay bills and get to work.

The above has been taken from an ECB paper published on 8 November 2017 entitled ‘on revisions to the Union crisis management framework‘.

This story from the goldcore.com Internet site was picked up by the folks at Zero Hedge at 7:52 a.m. EST on Tuesday morning — and I thank ‘Angel1234’ for sending it our way.  Another link to it is here.


Russian F.M. Lavrov slams “most dangerous” illegal U.S. presence in Syria – seeks U.S. withdrawal

Russia’s Foreign Minister Sergey Lavrov has slammed the U.S. for its presence in Syria being not only illegal, but deeply counterproductive.

Lavrov also highlighted a statement from the Russian Defence Ministry which unequivocally accuses (with accompanying photographic evidence) the U.S. of failing to target ISIS fighters in Syria while allowing them safe passage away from oncoming Syrian Arab Army liberators.

Syria has repeatedly stated, including at the United Nations, that U.S. troops and airmen in Syria are not actually fighting ISIS but are merely playing an obstructionist role to the inevitable Syrian victory, one which includes the arming and financing of terrorist groups.

Russia’s latest statements back up these crucial long time claims by Damascus.

All too true, I’m afraid.  This longish news story by Adam Garrie put in an appearance on theduran.com Internet site at 3:14 p.m. EST on Tuesday afternoon — and it’s certainly worth reading if you have the interest.  I thank Roy Stephens for pointing it out — and another link to it is here.


Oil could top $200 if Saudi-Iran war breaks out

Events appear to be spinning out of control in the Middle East, and the threat a Saudi-Iranian war is looking increasingly credible. Make no mistake, an out and out conflict between the two nations would be an unmitigated disaster for the region and the world.

Last week, Houthi rebels in Yemen launched a missile targeting a Saudi airport near Riyadh. The missile was intercepted, but a Saudi-led military coalition battling the Yemeni rebels called the attack a “blatant military aggression by the Iranian regime which may amount to an act of war.” The Saudis reserved the “right to respond”, according to the official Saudi Press Agency.

The major OPEC oil producers, all abutting the Persian Gulf, export almost 20 percent of the world’s oil supply through the Strait of Hormuz, which connects the Persian Gulf to global markets. The strait, a mere 34 miles wide at its narrowest, sits pinched between Iran to the north and Oman to the south. Were a war between Saudi Arabia and Iran to erupt, this choke point could easily be closed.

Indeed, shipping could stop even before a single ship is damaged. If insurers perceive an imminent risk of attack on a tanker in the region, they would either suspend insurance or charge exorbitant rates for coverage. Under the circumstances, vessel owners could opt to wait out the hostilities rather than risk their tankers.

This commentary/opinion piece was posted on the cnbc.com interne site last Friday — and it’s the second offering in a row from Roy Stephens.  Another link to it is here.


Reining in the Rogue Royal of Arabia — Patrick Buchanan

If the crown prince of Saudi Arabia has in mind a war with Iran, President Trump should disabuse his royal highness of any notion that America would be doing his fighting for him.

Mohammed bin Salman, or MBS, the 32-year-old son of the aging and ailing King Salman, is making too many enemies for his own good, or for ours.

Pledging to Westernize Saudi Arabia, he has antagonized the clerical establishment. Among the 200 Saudis he just had arrested for criminal corruption are 11 princes, the head of the National Guard, the governor of Riyadh, and the famed investor Prince Alwaleed bin Talal.

The Saudi tradition of consensus collective rule is being trashed.

MBS is said to be pushing for an abdication by his father and his early assumption of the throne. He has begun to exhibit the familiar traits of an ambitious 21st-century autocrat in the mold of President Recep Tayyip Erdogan of Turkey.

Yet his foreign adventures are all proving to be debacles.

This commentary by Pat appeared on his Internet site, buchanan.org, on Monday evening — and I found it embedded in a Zero Hedge story that Brad Robertson sent along yesterday.  It’s certainly worth reading if you have the interest — and another link to it is here.


Zimbabwe ‘Coup’ Escalates: U.S. Embassy Closes, Explosions Rock Harare, Military Seize State Broadcaster

Following at least three explosions across Zimbabwe’s capital city tonight – following what appears to be the start of a military coup as tanks rolled in – the US embassy in Harare has been closed. Additionally, reports state that troops have deployed on the streets and have seized the state broadcaster.

As we detailed earlier, The Associated Press said it saw three tanks with several soldiers in a convoy on a road heading toward an army barracks just outside the capital, Harare, while Reuters reported that four tanks were seen heading toward the capital.

Zimbabwe is facing a political crisis with the ruling Zanu-PF party, as a very public showdown over who is likely to succeed President Robert Mugabe plays out.

The current standoff is between the Youth faction, loyal to his wife, Grace Mugabe, and the former liberation fighters, loyal to Emmerson Mnangagwa, the vice president who was fired last week. Al Jazeera’s Hannah Hoexter explains.

But the situation appears to have escalated notably in the last few hours as The Telegraph reports, several loud explosions echoed across central Harare in the early hours of Wednesday after troops deployed on the streets of the capital and seized the state-owened Zimbabwe Broadcasting Corp.

This news item was posted on the Zero Hedge website at 7:56 p.m. EDT on Tuesday evening — and it comes courtesy of Brad Robertson.  Another link to it is here.  An update to this story in the very wee hours of this morning courtesy of The New York Times is headlined “Zimbabwe’s Military, in Apparent Takeover, Says It Has Custody of Mugabe”  — and I tip my hat to Roy Stephens for that one.


Another insider feels compelled to admit the gold market is rigged

Writing over the weekend for the Sharps Pixley bullion dealership in London, market analyst Lawrie Williams confided that he increasingly believes that the gold market is being rigged. Williams wrote that he has been pushed to such a conclusion by the growing number of smashes to the market out of the blue.

Williams wrote: “We have just seen yet another instance of a totally insane volume of notional gold hitting the futures markets, surely designed to stop any positive momentum for gold in its tracks. I say ‘insane’ because in a true fair market no one in their right minds would put so much on the market in such a short space of time even if it involves only paper gold rather than actual bullion.

These ‘flash crashes’ in the precious metals prices seem to be happening every time we start to see positive moves in the gold price. That cannot be coincidental. [GATA board member] Ed Steer, who publishes a daily newsletter to subscribers, called it ‘a picture-postcard waterfall decline’ — an apt description.

Ed places the latest ‘flash crash’ firmly at the hands of JP Morgan and the other bullion banks that hold large short positions in the precious metals — particularly in gold and silver — and thus have a vested interest in keeping the price suppressed. Ed’s views are well-known on market manipulation — and are not seen as reality by some precious metals market mainstream observers.  But these ‘coincidental’ flash crashes do seem increasingly to support his viewpoint as a counter-argument to what might be considered the mainstream financial establishment, which is very much in denial — probably because such manipulation appears to be an integral part of doing business in the sector.

Bingo, Lawrie. Yes, the gold industry is the market-rigging industry, a giant real-life episode of “The Emperor’s New Clothes,” where everybody can see what is going on but no one dares say it except a few naive little kids who happened to pass by the parade, were not let in on the scheme, and only gradually deduced its evil and world-encompassing intent.

This worthwhile commentary showed up on the gata.org Internet site at 8:02 p.m. EST on Monday evening — and it had to wait for today, as I was already full up for Tuesday’s column.  Another link to it is here.


BIS refuses to answer questions about its activity in the gold market

The Bank for International Settlements today refused to answer questions from the Gold Anti-Trust Anti-Trust Action Committee about the bank’s activity in the gold market.

On Monday your secretary/treasurer wrote to the bank’s public information office calling attention to GATA consultant Robert Lambourne’s latest analysis of the bank’s October statement of account involving gold, which Lambourne construed to show a substantial increase in the bank’s use of gold swaps.

Your secretary/treasurer wrote:

“Dear BIS Press Office:

“On November 12 the Gold Anti-Trust Action Committee Inc. published an analysis by its consultant, Robert Lambourne, of the recent increase in gold swaps undertaken by the Bank for International Settlements.

“Could you please tell me whether this analysis is correct or, if it is in error in any way, how so?

“Could you also please tell me the BIS’ purpose and objectives with these gold swaps and with the bank’s involvement in the gold and gold derivatives markets generally?

“Thanks for your help.”

GATA received this unsigned response from the BIS today…

This brief GATA dispatch, which is certainly worth a look, was posted on their Internet site at 9:15 a.m. on Tuesday morning EDT — and another link to it is here.


Gold Louis Vuitton toilet on sale for $100,000

And now for that person on your list who truly has everything — a $100,000 golden toilet made with Louis Vuitton bags.

Extravagances have reached a new level with this immaculate shrine, which has left many wondering who would actually dare use it.

Controversial artist Illma Gore worked for three months and used 24 different bags, valued at $15,000, in addition to a $3,000 suitcase to make this fully functioning potty, according to Tradesy where it’s listed for sale.

The lavatory will ship from California, and its anticipated arrival is  within four to eight days.

And what if you’d like to return the commode because perhaps the Louis Vuitton fabric disagrees with your heinie, sorry, all sales are final.

Mercifully, the above five paragraphs are all there is to this brief news item that put in an appearance on the palmbeachpost.com Internet site late on Sunday morning EST — and it’s another story that didn’t make Tuesday’s column.  The photo is worth the trip.  I thank Swedish reader Patrik Ekdahl for pointing it out — and another link to it is here.


The PHOTOS and the FUNNIES

When I was in Black Hills of South Dakota back in August, I read about today’s critter and, not surprisingly, never saw one…as they’re on the endangered species list.  It’s the black-footed ferret, also known as the American polecat.  The species declined throughout the 20th century, primarily as a result of decreases in prairie dog populations.  They were considered extinct in the wild in 1987, but a captive breeding program has helped restore their numbers.  The ‘click to enlarge‘ feature helps with both shots, especially the first one.


The WRAP

If taxation is the expropriation of wealth by force, then inflation is its expropriation by fraud.” — Doug Casey


It was obvious once again that the powers that be were very active in the precious metal market yesterday.  Their most obvious footprints were at the London open — and again at the afternoon gold fix.  Like on Monday, they were there to do whatever it took to keep precious metal prices in line despite the horrific bad news from every economic and monetary corner one could think of — and in some ways, yesterday’s price action had all the hallmarks of Ted’s “scam within a scam“…all compressed into a 7-hour time-line.

Overlaid on top of that was the drumbeat of a dollar index heading for the nether reaches of the world once again — and it was equally as obvious that those ‘gentle hands’ had to be employed during the New York trading session to save it once again yesterday.

It’s Peter Warburton’s scenario being played out in real time right before our eyes…

…on the other, they incite investment banks and other willing parties to bet against a rise in the prices of gold, oil, base metals, soft commodities or anything else that might be deemed an indicator of inherent value. Their objective is to deprive the independent observer of any reliable benchmark against which to measure the eroding value, not only of the U.S. dollar, but of all fiat currencies. Equally, they seek to deny the investor the opportunity to hedge against the fragility of the financial system by switching into a freely traded market for non-financial assets.

Here are the 6-month charts for all four precious metals — and there isn’t much to see once again.  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 a couple of dollar until 9 a.m. China Standard Time on their Wednesday morning. It was sold quietly lower until 3 p.m. over there — and jumped up about 3 bucks as the dollar index rolled over. At the moment it’s up only $2.30 the ounce. Silver was up a few pennies in the first couple of hours of trading once it began in New York at 6:00 p.m. yesterday evening. It traded flat until 2 p.m. CST…and rallied a few more pennies at the same time as gold — and it’s up 4 cent the ounce. Platinum followed a similar pattern to silver — and it’s up 2 dollars. Ditto for palladium, at least until around 2:30 p.m. CST — and it has been sold lower since — and is down a buck as Zurich opens.

Net HFT gold volume is already up a bit over 55,000 contracts, with no roll-over/switch volume worth mentioning — and that number in silver is 8,300 contracts — and roll-over/switch volume is pretty quiet in that precious metal as well.

The dollar index didn’t do much of anything, trading flat until minutes before 3 p.m. CST. It headed sharply lower at that juncture — and is down 15 basis points as London opens.

Continuing on with Peter Warburton’s analysis that he made back in April of 2001…it should be obvious that at some point these “investment banks and other willing parties” are going to lose this game, as they can’t hold back the tide forever.

Back on July 12 of this year, CME CEO Terry Duffy gave some hint of that in his now-infamous interview with Neil Cavuto on Fox Business News.  And as I said in my commentary about this on that date…”One thing that I can tell you for sure, having been in lots of interview situations myself, is that the question did NOT come out of the blue, as I’m sure that Duffy asked Cavuto to ask it.  Cavuto would never have thought it up on his own.“…”Duffy might has well taken out a full-page ad in The Wall Street Journal, as that’s as close to an admission that significantly higher precious metals price are in our future, as we’re ever going to get.

The significant part of the interview, which is linked here, begins at the 4:55 minute mark.

So we’re now just waiting for whatever “event” that Duffy figures will precipitate these moves — and I’d be prepared to bet a significant amount of money that it will come wrapped in a ‘false flag’ of some kind.  I’ll also bet that this ‘event’ will occur when New York — and perhaps even London — are both closed.

We’ll see.

And as I post today’s column on the website, I note that the gold price rallied sharply once London opened, but ran into “all the usual suspects” immediately.  At the moment gold is up $3.90 the ounce.  It was the same for silver — and it’s up 7 cents.  Platinum is up 5 dollars.  Palladium continues to head in the other direction — and is currently down 3 bucks.

Gross gold volume has jumped up to around 82,000 contracts — and net of the smallish roll-over/switch volume out of December, net HFT gold volume is a bit over 77,000  contracts.  Net HFT silver volume is now up to 13,100 contracts — and there’s still very little roll-over/switch volume in silver, either.  It’s more than obvious from these big volume numbers that JPMorgan et al are right there as short sellers of last resort.

The dollar index continues its decline — and it’s down 27 basis points.

Yesterday, at the close of COMEX trading, was the cut-off for this Friday’s Commitment of Traders Report.  Just scanning the last five trading days for both silver and gold in the above charts, I’m not prepared to hazard a guess as to what might be in it, especially after being so wide of the mark in silver in last week’s COT Report.

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

Ed