All Four Precious Metals Get Closed at New Lows on Wednesday

08 February 2018 — Thursday


The gold price began to rally quietly, but somewhat unevenly higher once trading began at 6:00 p.m. EST on Tuesday evening in New York — and the high tick of the day was set shortly before the London open, which was shortly after the dollar index got turned higher.  The price rolled over a bit lower from there — and except for a one-hour long rally going into the afternoon gold fix, ‘da boyz’ ran the price down to its low tick of the day, which came at precisely 1:30 p.m. EST…the COMEX close.  It began to crawl quietly higher starting at 2 p.m. in the thinly-traded after-hours market — and that continued right into the 5:00 p.m. EST end of trading.

The high and low tick were reported as $1,334.80 and $1,313.50 in the April contract.

Gold finished the Wednesday session in New York at $1,318.10 spot, down $5.60 on the day, as ‘da boyz’ set a new intraday low for this engineered price move down.  Net volume was extremely heavy at a bit over 326,000 contracts.

It was mostly the same for silver.  It rallied a bit until 11 a.m. China Standard Time on their Wednesday morning — and then chopped sideways until the marginally higher high tick of the day was set shortly after 3 p.m. CST when the dollar index hit its low of the day.  It was sold quietly lower from there — and then got bumped down a bit more after the noon silver fix was put to bed in London.  JPMorgan et al worked their magic once COMEX trading began — and the down/up spike low tick of the day was placed about two minutes before the COMEX close.  Then it gained a few pennies in after-hours trading.

The high and low ticks in this precious metal were recorded by the CME Group as $16.73 and $16.21 in the March contract.

Silver was closed yesterday at $16.34 spot, down 27.5 cents, but was down 39 cents at its low tick.  Net volume was extremely heavy at something under 95,500 contracts, as the Managed Money traders were obviously pouring onto the short side.  There was a fair amount of roll-over/switch volume as well.

The price pattern in platinum was similar in most respects to what happened in gold and silver, so I’ll dispense with the play-by-play.  Platinum’s low of the day was set by ‘da boyz’ at the COMEX close, of course — and it recovered a few dollars from there.  It finished the Wednesday session in New York at $978 spot, down 11 bucks on the day — and another new low for this engineered move down.

Palladium chopped sideways until the Zurich open — and at that juncture, the selling pressure began — and the low tick was set about thirty minutes before the Zurich close.  It popped up ten bucks almost right away — and then traded sideways for the remainder of the day.  Palladium was closed at $978 spot, down 25 dollars from Tuesday, but off it’s low tick by 6 or 7 bucks.

The salami slicing continues in all four precious metals.

The dollar index closed very late on Tuesday afternoon in New York at 89.67 — and began to chop quietly lower from there.  And, for the third day in a row, gentle hands appeared less than an hour before the London open.  The low tick at that point was printed at 89.47.  It chopped quietly higher until 11 a.m. in London — and then didn’t do a lot until another ‘rally’ began at the afternoon gold fix in London, which was 10 a.m. EST in New York.  That ‘rally’ topped out a few minutes before the COMEX close — and it faded a small handful of basis points from there until trading ended.  The dollar index finished the day at 90.34…up 67 basis points on the day.

If you think this sudden ‘strength’ in the U.S. dollar index has an odour to it, you would be right about that.

I’m including the 3-day dollar index chart in today’s column so you can see how these out-of-the-blue dollar index rallies begin shortly before, or at, the London open every day so far this week.  This is the ‘gentle hands’/PPT in action in the currency markets.  They were there at the afternoon gold fix yesterday as well.

There are no markets anymore, only interventions.” — Chris Powell, April 2008

And here’s the 6-month U.S. dollar index — and I’ll bite my tongue about it for the second day in a row, as I’ve already said my piece two paragraphs ago.

The gold stocks opened down a bit, but were back in positive territory by the afternoon gold fix in London, as the gold price rallied for an hour going into the fix.  The shares began to chop lower in a fairly broad range until shortly after 1 p.m. in New York trading — and for the most part, they chopped quietly sideways into the close after that.  The HUI finished down 1.15 percent.

The silver equities opened down a bit as well, but then rallied into positive territory right away, but only for about fifteen minutes — and were headed lower even before the afternoon gold fix was done.  Then, like the gold stocks before them, they were sold down to their lows by shortly after 1 p.m. as well — and they didn’t do a lot after that.  Nick Laird’s Intraday Silver Sentiment/Silver 7 Index was closed down a chunky 3.52 percent.  Click to enlarge if necessary.

I would suspect that there was some forced sales due to margin calls in selected constituents of the Silver 7 Index yesterday, with Coeur Mining being the old one that I could see that came close to filling the bill…down 4.02 percent…as all the other major silver stocks I track, didn’t close anywhere near that percentage loss.

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

The CME Daily Delivery Report showed that 55 gold and 60 silver contracts were posted for delivery within the COMEX-approved depositories on Friday…so those 214 silver contracts that got added to the February delivery month yesterday, turned out to be the real deal!  In gold, of the five short/issuers in total, the largest by far was Canada’s Scotiabank with 39 contracts out of their in-house/proprietary trading account. [Don’t forget that Scotiabank doesn’t have a client account.]  And it should come as no surprise at all that JPMorgan stopped 54 of those contracts for its own account.  In silver, the sole short/issuer of those 60 contracts was International F.C. Stone — and JPMorgan stopped 56 of them for its client account.  The link to yesterday’s Issuers and Stoppers Report is here.

It’s amazing to watch JPMorgan grab every gold and silver contract they can get their hands on…for itself, or its clients.  What do they know, that we don’t…at least not yet.

The CME Preliminary Report for the Wednesday trading session showed that gold open interest in February fell by 202 contracts, leaving 1,426 left, minus the 55 mentioned two paragraphs ago.  Tuesday’s Daily Delivery Report showed that only 113 gold contracts were actually posted for delivery today, so that means that another 202-113=89 gold contracts vanished from February at the mutual consents of both the short/issuers and long/stoppers involved.  Silver o.i. in February declined by 13 contracts, leaving 585 still open, minus the 60 contracts mentioned two paragraphs ago.  Tuesday’s Daily Delivery Report showed that exactly 13 silver contracts were posted for delivery today, so the decline in open interest and the deliveries match for a change.

There was another withdrawal from GLD yesterday, as an authorized participant removed/took ownership of 75,900 troy ounces.  And as of 6:32 p.m. EST yesterday evening, there were no reported changes in SLV.

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

There was a bit of activity in gold over at the COMEX-approved depositories on the U.S. east coast on Tuesday.  They received only 2,399 troy ounces, all of which went into Delaware — and there was 36,858 troy ounces shipped out — and that was from JPMorgan’s vault.  The link to this activity is here.

There was some activity in silver as well.  There was 726,931 troy ounces deposited, but nothing was shipped out.  Another truck load…605,120 troy ounces…was left at JPMorgan — and the remaining 121,810 troy ounces was dropped off at Delaware.  The link to all that is here.

It was very busy over at the COMEX-approved gold kilobar depositories in Hong Kong on their Tuesday.  They reported receiving 6,221 of them, plus they shipped out 8,463.  All of this action was at Brink’s, Inc. of course — and the link to that, in troy ounces, is here.

Before hitting the stories for today, here’s some commentary by Bill King that I lifted from yesterday’s edition of his King Report.  Bill’s no dummy — and he’s been around the proverbial block a number of number of times — and this is what he had to say about the equity market price action on Monday and Tuesday…

The Monday night low for SPHs was 2,529, a decline of 92 handles, almost 4%!  This is the biggest overnight tumble since the triple-digit crash on the night that Trump was elected.
Six minutes before the NYSE opened, SPHs traded at 2,579.  Ten minutes after the open, they hit 2,641.  The 63-handle jump in 16 minutes was obviously impact trading/manipulation/plunge protection.
Within twenty-two minutes of the NYSE open, SPHs hit 2680, up 72.00 and 151 points above the overnight low of 2529.  We ask you, “Is this natural market action?  Is this how real buyers behave?” 
Ergo, there were two massive ‘V’ rallies from the last hour of Nikkei trading to the first 22 minutes of NYSE trading on Tuesday.  ‘V’ rallies are the signature of impact trading/manipulation/plunge protection.
The 64-handle (2.4%) SPH rally from 14:30 EST to 15:10 EST looks a manipulation to disabuse real sellers, short-VIX hedgers and traders from dumping stocks during the final hour of trading – or it was the first leg of a ‘pump & dump’ scheme.
Let this sink in for a minute: There was a 2.3% S&P 500 Index rally that occurred within 40 minutes.  Once again, this is not natural market activity.
We warned in yesterday’s missive that the plunge protection operation usually occurs after the Nikkei closes.  This is when SPHs have their thinnest market.  Yesterday’s rescue operation started during the last hour of trading in Japan.  From midnight EST until 4.23 EST, SPHs rallied 115.50.  Obviously this was manipulation and a rescue operation.  END

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


Icahn calls U.S. stock nosedive “rumblings of an earthquake“: CNBC

Billionaire activist investor Carl Icahn warned on Tuesday that investors have exposure to “way too many derivatives” and called the stock market’s nosedive just “rumblings of an earthquake.”

The market is really not a place for the average person to be playing around with derivatives,” Icahn said on CNBC. “Today, you have these triple-leveraged ETFs (exchange-trade funds) that are crazy.

U.S. stocks swung wildly between positive and negative territory on Tuesday, a day after the Dow and S&P 500 indexes saw their biggest one-day declines in more than six years, while a world stock index dropped more than 1 percent. The pullback followed a rapid run-up in the start of the year and strong 2017 gains.

Icahn said investors should not use the markets like a casino. “… that’s a huge mistake. This casino is on steroids.

This Reuters article, filed from New York, was posted on their website at 11:14 a.m. on Tuesday morning EST — and I found it in yesterday’s edition of the King Report.  Another link to it is here.

Gundlach: Market Unwind Will Be “Turbulent, Not Just a Few Days

Doubleline CEO Jeffrey Gundlach echoed earlier calls by analysts from SocGen and Morgan Stanley, saying that the “low rate-low volatility” market environment went on for so long that now “the unwind will be turbulent and not over in a couple of days.In other words, don’t buy the dip.

In addition to his discussion of bitcoin and volatility, Gundlach also touched on what many agree was the proximal catalyst for last Friday’s market plunge which in turn triggered this week’s vol eruption: “Clearly, the market gets shaky when the 10-year hits 2.85 percent,” Gundlach told Reuters.  “Just look at this week, and today. Makes one consider what could be coming if 10s push over 3 and 30s (30-year Treasury bond) over 3.22 percent.

During his January webcast, Gundlach correctly predicted that if the 10-year U.S. Treasury note yield went above 2.63%, U.S. stock investors would be spooked. The 10-year yield is currently trading around 2.84%, and its spike today on the heels of the “deficit-busting” Senate agreement which would lift spending caps by $300 billion above current levels, sent the markets into the red after an impressive morning rally.

In little comfort for equity bulls, Gundlach said it is “hard to love bonds at even a 3 percent yield.  Rising interest rates are a problem — and the U.S. is in debt and there is massive bond supply.

This news item showed up on the Zero Hedge website at 7:46 p.m. EST yesterday evening — and another link to it is here.

Biggest Bubble Ever Meets Biggest Pin: Casino Markets — Bill Bonner

The markets were noisy yesterday. A third day of wildly gyrating prices left stocks and bonds in retreat… as the financial press shouted out its outsized fears… and its calming little lies.

This morning, we’re beginning to see some green figures again. Tokyo and London are up slightly.

We still don’t know whether this will turn into the major plunge we anticipated. But already, it has delivered a message: Watch out!

We’re not the only ones who are worried. Bloomberg caught up with billionaire investor Carl Icahn:  “Passive investing is the bubble right now, and that’s a great danger,” he said.  “When you start using the market as a casino, that’s a huge mistake,” he added.

Eventually, Icahn reckons, the bubble will implode and lead to a crisis bigger than in 2009.

This worthwhile commentary by Bill was posted on the Internet site on Wednesday sometime — and another link to it is here.

Credit Card, Student And Auto Debt All Hit Record Highs In December

The U.S. consumer closed out 2017 with a credit bang.

While we reported last month that in November U.S. credit card debt had just surpassed the previous all time high hit in July 2008 just before all hell broke loose when Lehman filed for bankruptcy two months later, there was a slight chance that in December this number had declined after the record surge in November credit-funded spending (which was just revised from $28BN to $31BN0.

Well, that did not happen, and while December total consumer credit increased by less than the expected $20BN, it was still an impressive $18.45BN, of which $5.1billion was credit card debt and $13.3 billion non-revolving – or student and auto loans.

More importantly, with the latest $5.1 billion increase in revolving, or credit card, debt the total is now $1.027.9 trillion, the highest number on record.

Meanwhile, non-revolving credit which with the exception of one definition change month, has never gone down, also hit a new all time high of $2.813 trillion, a monthly increase of $13.34 billion.

So for anyone still wondering why the U.S. economy closed 2017 with an upward GDP burst, here is your answer. The problem is that with the personal savings rate just shy of all time lows…… and with U.S. consumers deep in the red on their household debt, just what will keep the U.S. economic expansion going from this point on is far less clear, especially if the stock market has now peaked, as recent events suggest.

This rather short Zero Hedge article was posted on their website at 3:21 p.m. EST yesterday afternoon — and I thank Brad Robertson for sharing it with us.  Another link to it is here.

Biggest Ever Debt & Dollar Crisis Coming: Greg Hunter interviews Peter Schiff

Money manager Peter Schiff says the wild swings in the market are because of massive central bank money printing and exploding debt. What in the heck is going on?  Schiff explains, “The real question is what was going on when the markets were going up?  That’s what made no sense.  The fact that they are coming back down to earth makes a lot more sense.  I think the catalyst for this move (in the stock market) is, ironically, the tax cuts we got because that put the bigger deficits in the spotlight.  Now, the deficits are going to go off the charts because we have to replace the lost tax revenue with more debt.

What about the economy improving under Trump? Schiff says, “Growth hasn’t really picked up, it’s actually slower.  This is all nonsense.  The economy is not improving.  Nothing is happening other than we are going into huge debt.  We got tax cuts, and we borrowed the money to pay for them.”

Schiff predicts in the next recession, the Fed will go back to printing even more money. Schiff contends, “There is no question in my mind because the alternative is politically unacceptable to anybody, which would be a worse financial crisis than 2008.  When we go back into recession, when we are in a bear market, they are going to go back to the only formula that they think works.  They can’t do rate cuts because rates are so low, they can really cut them very much.  So, the only real stimulus they can reach for is QE (money printing), but it’s not going to work this time.  We are going to overdose on QE.  There are no more bubbles that they can blow.

This 27:37 minute video interview was posted on the Internet site yesterday — and it comes to us courtesy of Brad Robertson.  Another link to it is here.

Robo-Brokers Froze as Market “Flash Crashed” –- Open the Pod Bay Doors Hal

* Volatility (VIX) Has Largest Move In History 117%!

* Nomura Bank Offers 4 Cents on the Dollar to Those Who Bet on No Volatility

* Sentiment Changes: Once Complacent Investors Now Jumpy and Nervous

This 58-minute audio commentary, of which I’ve only listed to part of, was posted on the Internet site on Tuesday sometime.

Judy Sturgis sent it our way, with the comments that it was an… “Excellent interview.   Well worth a listen.   I am sure your readers will find this thoughtful.”  I was certainly impressed with what I heard — and I hope your are too…if you have the time to listen to it all, that is.  Another link to this audio interview is here.

Dutch lender Rabobank to pay $369 million in money-laundering case

Dutch lender Rabobank’s California unit agreed Wednesday to pay $369 million to settle allegations that it lied to regulators investigating allegations of laundering money from Mexican drug sales and organized crime through branches in small towns on the Mexico border.

The subsidiary, Rabobank National Association, said it doesn’t dispute that it accepted at least $369 million in illegal proceeds from drug trafficking and other activity from 2009 to 2012.

It pleaded guilty to one count of conspiracy to defraud the United States for participating in a cover-up when regulators began asking questions in 2013.

The penalty is one of the largest U.S. settlements involving the laundering of Mexican drug money, though it’s still only a fraction of the $1.9 billion that Britain’s HSBC agreed to pay in 2012.

This story appeared on the Internet site at 7:14 a.m. EST on Wednesday morning — and I thank West Virginia reader Elliot Simon for sending it along.  Another link to it is here.

Deutsche Bank Shares Plunge to Crisis Level

Deutsche Bank AG fell to the lowest level since a crisis of confidence in 2016 after its fourth-quarter earnings flop prompted analyst downgrades.

MainFirst’s Daniel Regli lowered his recommendation on the stock to the equivalent of sell on Wednesday, citing the bank’s “damaged franchise as well as a need for substantial restructuring, including the closure of several businesses.” Neil Smith at Bankhaus Lampe cut his target price but kept his buy recommendation.

Shares of the bank have lost 11 percent since Friday, when the Frankfurt-based company reported revenue at a seven-year low and declines at businesses from transaction banking to equity derivatives. The sell-off across global equity markets added to the slump, though many of its European competitors posted gains on Wednesday as Deutsche Bank slipped an additional 0.4 percent.

Deutsche Bank struggled to stem its share-price slide and maintain client confidence after the U.S. Department of Justice requested $14 billion in September 2016 to settle a probe tied to sales of mortgage-backed securities. The German lender reached a $7.2 billion agreement in December of that year.

The goal of forging a safer bank with more reliable earnings streams is not yet clearly in sight,” Moody’s Investors Service analysts led by Peter Nerby wrote in a note to clients Monday. “There are still structural impediments blocking a quick path to restored profitability,” Moody’s said, citing “chronic revenue weakness in key markets and business lines.

This Bloomberg article was posted on their Internet site at 8:30 a.m. Denver time on Wednesday morning — and was updated about four and a half hours later.  I thank Swedish reader Patrik Ekdahl for sharing it with us — and another link to it is here.  The Zero Hedge spin on this story is far less charitable — and is headlined “Deutsche Bank Tumbles to 2016 Lows Amid Reports of HNA Technical Default“.  It’s worth reading if you have the interest.  I thank Brad Robertson for that one.

Ukrainian factory Azovmash losses thousands of workers to Russia

Despite being portrayed as the ‘aggressor’ many Ukrainians move to Russia in search of employment.

Thousands of workers from one of the largest machining factories in Ukraine, Azovmash in Mariupol, Donetsk Region, have fled to Russia, suggesting there may be truth in the revolutionary idea that if you pay workers fairly, and give them safe homes without the occasional threat of artillery fire, they are overall satisfied. Politnavigator reports, (in Russian):

I spoke with the Deputy Director of Azovmash. A large enterprise, once it had a workforce fifteen thousand people. Now, barely one thousand remain. I asked: where is everyone? He said to me: “Evgeni, you will not believe it – they took them by bus loads to the Russian Federation.” Whole families, whole workshops departed for Russia. Because they were given apartments, they were given a normal salary, no one ran after them with a grenade launcher wearing a balaclava. They instead got work, and a predictable future. said Evgeni Murayev, Verkhovna Rada deputy.

Who would have thought people don’t want to be chased around by balaclava-wearing “gentlemen” throwing grenades at them. At least they weren’t chased around by women in balaclavas throwing chickens at them (Google it…or don’t…better yet…don’t).

In all seriousness, this is excellent commentary to raise against the argument that Russia invaded Ukraine to attack and destroy the people. Generally speaking, people don’t run towards their attackers in order to start new lives. Millions of Ukrainians have moved to Russia because they speak the same language, form the same culture, and largely represent the same East Slavic people group. It is fair to note, however, that Mariupol in Donbass, is part of Eastern Ukraine, the half of the country that is very Pro-Russian.

This article put in an appearance on the Internet site about 7:30 p.m. Moscow time on their Wednesday evening — and it comes to us courtesy of Roy Stephens.  Another link to it is here.

Nine straight years of record annual gold mine production

According to the World Gold Council’s Gold Demand Trends report released Tuesday primary gold production hit another record in 2017 after nine years of annual growth in output.

Overall mine production totalled 3,268.7 tonnes or just over 105 million troy ounces in 2017 which was only slightly higher than in 2016 as new mine starts in recent years have mostly served to fill the gap left by production losses elsewhere according to the WGC report. Compared to 2010, global gold output has surged by 525 tonnes or nearly  17m ounces.

The WGC, an industry body, estimates that output in China – the world’s top producer – fell 9% last year, only the second annual drop in production since 1980. China, which overtook South Africa as the number one miner of the metal in 2007, produced 455 tonnes of the yellow metal in 2016 according to U.S. government figures.

Stricter environmental regulations in China relating to cyanide in tailings imposed in 2017 resulted in the closing of some marginal operations over the course of the year. In February last year Beijing announced plans to reduce the number of gold mines to around 450 from more than 600 before and shutting down40 tonnes of outdated production capacity by the end of 2020.

First of all you have to believe what that the World Gold Council is telling us about world gold production.  And once you get past that, then you have to believe their source data from GFMS.  But no matter how much positive spin they try to put on this, the fact of the matter is that world gold production has been in more or less terminal decline since its high in 2009.  The embedded chart tells all.  It was posted on the Internet site — and I plucked it from the Sharps Pixley website last night.  Another link to this gold-related news item is here.


I was driving down the freeway today — and spotted a bird I hadn’t seen in these parts for years.  The cold must have driven them south this winter, as that’s the only time you ever see them either in the city, or this far south.  It’s the snowy owl.  From its white and black speckled feather pattern, it could tell it was a young bird, but still a treat to see.  Click to enlarge.


Remarkably, there already exists, in a very real sense, cryptocurrencies connected to precious metals in the form of ETFs, including SLV and GLD, and others. In essence, the race to develop a cryptocurrency connected to gold and silver has already been run — and run quite successfully, I might add. Admittedly, there has been no great recent rush to silver and gold ETFs, other than the rush to stealthily acquire physical silver and gold by JPMorgan, using SLV and GLD, as well as the COMEX, as its acquisition vehicles of choice.

But that’s my whole point, namely, that the coming collective investment rush into precious metals has not commenced due to the rotten price performance since 2011. JPMorgan, being the market master (and master criminal) that it is, has been harvesting and accumulating massive amounts physical silver and gold since then, while simultaneously being the single entity most responsible for the low silver and gold prices by virtue of it also being the largest paper COMEX short. Just as the early adopters of Bitcoin made the most money, JPMorgan stands to make the most in the coming rush to silver and gold, along with those holding the metals.

All that’s missing at this point is a lift off in price to a level that will set off the coming collective investment buying wave. That’s the main lesson of the recent stock market and cryptocurrency volatility – once the preconditions are in place, all it takes to get the ball rolling is price action. Once JPMorgan gets what it feels is enough physical metal in its hands, the game will begin. Judging by what other markets have done, the silver and gold rush will not end without a complete rewriting of history.Silver analyst Ted Butler: 07 February 2018

Well, ‘da boyz’ were taking no prisoners yesterday, as they set new low closes in all four precious metals, along with the other two card-carrying members of what I call the Big 6 commodities…copper and crude oil.

The 50 and 200-day moving averages in gold still remain unbroken, but ‘da boyz’ are in full control of the precious metals, regardless of what’s happening in the currency and equity markets, so I’m expecting their imminent demise.  And if not the 200-day, certainly the 50-day.

Subscriber Paul Fillion had this comment yesterday…”Wonder if they are saving the gold smash for the Chinese New Year…[starts February 16 over there – Ed]…when their markets will be closed for something like a week? Just a thought. Seems like they are waiting for something.”  That may be the case, but they certainly got a big head start on it yesterday — and I was wondering out loud on the phone with Ted that it seemed like the powers-that-be postponed this major assault until after the cut-off for this Friday’s COT Report…which is an old trick of theirs.  Ted certainly didn’t disagree with that notion.

Here are the 6-month charts for all four precious metals, plus copper and…it’s been a while…WTIC.  All six had their prices engineered lower on Wednesday, as the Managed Money traders in all six were tricked into dumping more longs and adding to short positions…which is the sole reason for these price declines.  The ‘click to enlarge‘ feature helps a bit with the first four.

And as I type this paragraph, the London open is less than ten minutes away — and I see that the gold price was sold quietly lower…to a new intraday low for this move down…until around 12:40 p.m. China Standard Time on their Thursday afternoon.  It has been inching unevenly higher since — and is currently down $6.00 an ounce.  The silver price was also lower in morning trading in the Far East — and its new intraday low was set at the same time as gold’s.  It has rallied as well — and is now down 2 cents at the moment.  Ditto for platinum — and it’s down 3 bucks.  Palladium was down 9 bucks by 1 p.m. CST, but it too has rallied a bit since — and is down only 4 dollars as Zurich opens.

Net HFT gold volume is already pretty healthy at somethin over 71,000 contracts — and that number in silver is way up there as well at 18,100 contracts.  There’s no question that the Managed Money traders are dumping longs and going short in droves in all four precious metals — and that will only accelerate in gold once the 50-day moving average is penetrated.  We’re but a chip shot away from that right now.

The dollar index has been chopping around in a 20 basis point range ever since trading began at 6:00 p.m. EST in New York on Wednesday evening — and it’s currently down 12 basis points as London opens.

With new interim lows already set in all four precious metals during early trading on Thursday, it’s obvious that ‘da boyz’ are still hard at work — and where the bottom is won’t be know until…as Ted Butler says…we see it in the rear-view mirror.  And if JPMorgan et al are gunning for gold’s 200-day moving average, there’s still lots of work for them to do.  It only remains to be seen how long they’re going to take to do it.

So we wait some more.

And as I post today’s column on the website at 4:04 a.m. EST, I note that three of the four precious metals have trended lower during London and Zurich trading. Gold is down $8.00…silver is now down 7 cent…platinum by 6 bucks — and palladium is now down only 2 dollars.

Gross gold volume is approaching 96,000 contracts — and net of roll-over/switch volume, net HFT volume is a bit over 85,000 contracts. Net HFT silver volume is now up to about 20,800 contracts.

The dollar is still in that big 20 basis point trading range that it’s been in throughout all of Far East trading on their Thursday, but it’s in ‘rally’ mode at the moment — and is now up 13 basis points.

With ‘da boyz’ obviously on the rampage in the COMEX futures market in the Big 6 commodities, absolutely nothing will surprise me when I check the charts after I roll out of bed later this morning.

That’s it for another day — and I’ll see you here tomorrow.


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