JPMorgan Sets Another Intraday Low Price For Silver

15 November 2018 — Thursday

YESTERDAY in GOLD, SILVER, PLATINUM and PALLADIUM


The gold price didn’t really do much in Far East trading until around 3 p.m. China Standard Time on their Wednesday afternoon.  It began to head lower from there — and the low tick was set at, or just before the morning gold fix in London…just like occurred on Tuesday.  It began to edge unevenly higher from that point — and around 12:45 p.m. in New York, the price jumped higher.  It certainly had all the hallmarks of a short-covering rally of some kind, as it quickly took out its 50-day moving average to the upside.  This rally was capped and turned lower starting at 2:15 p.m. in after-hours trading — and didn’t do much of anything after that.

The low and high ticks in gold were recorded by the CME Group as $1,198.10 and $1,217.20 in the December contract.

Gold was closed in New York on Wednesday at $1,210.50 spot, up $8.60 from Tuesday.  Net volume was reasonably healthy at around 250,500 contracts — and roll-over/switch volume out of December and into future months was just under 28,000 contracts in this precious metal.

Silver spent most the of the Far East trading session up a nickel or so but, like gold, was turned lower at 3 p.m. CST on their Wednesday afternoon.  Its low tick — and a new intraday low for this move down — also came at, or just before, the morning gold fix in London.  Once that event was done, it began to head  higher — and came complete with the same short-covering rally that gold had starting at 12:45 p.m. in New York.  The rest is the same as well.

The low and high ticks in silver were reported as $13.86 and $14.17 in the December contract.

Silver was closed at $14.13 spot, up 14.5 cents on the day.  Net HFT gold volume was pretty healthy at just under 79,500 contracts — and roll-over/switch volume amounted to a hair over 14,000 contracts.

The platinum price rallied a few dollars for an hour and change once trading began at 6:00 p.m. EST in New York on Tuesday evening — and that turned out to be its high of the day.  From there it was sold generally lower until around 1:30 p.m. CET in Zurich/7:30 a.m. EST in New York.  It headed higher from there, but ran into ‘something’ at the afternoon gold fix in London.  It was sold down to its low tick of the day by about 12:30 p.m. EST but, like silver and gold, began to rally around 12:45 p.m…fifteen minutes later.  Like for gold and silver…you know the rest.  Platinum finished the Wednesday session in New York at $833 spot, down 4 bucks on the day.

Palladium followed a very similar price path as platinum, but only up until 11 a.m. in Zurich on their Wednesday morning.  It began to head unsteadily higher from there, but really began to sail once trading began on the COMEX at 8:20 a.m. EST.  Then shortly after the afternoon gold fix in London, the price was brutally capped — and then driven sharply lower.  From 11:45 a.m. in New York, it basically chopped sideways until trading ended at 5:00 p.m. EST.  Palladium was closed at $1,112 spot, up 15 dollars on the day, but at least 8 bucks off its high tick.

The dollar index closed very late on Tuesday afternoon in New York at the 96.96 mark, which was its low tick of the day.  It began to ‘rally’ immediately once trading began at 6:00 p.m. EST a few minutes later.  It chopped quietly higher from there, with the 97.41 high tick of the Wednesday session coming at 11:30 a.m. GMT in London.  It proceeded to chop erratically lower from there until at, or just before the afternoon gold fix in London.  After a two hour and change break, it headed higher until a few minutes after 1 p.m. EST, but once the COMEX closed at 1:30…down it went again — and the 96.75 low tick was set a few minutes after 3 p.m. in New York.  I suspect that the usual ‘gentle hands’ appeared at that juncture — and it rallied quietly for about ninety minutes from there — and was closed at the 96.99 mark, up 3 basis points on the day.

I suspect that the Wednesday trading session in the currency market was another one where the dollar index would have crashed and burned if left to its own devices.

And here’s the 6-month U.S. dollar index chart.  The delta between its close…96.66…and the close on the intraday chart above, was 33 basis points yesterday.

The gold stocks jumped up a bit at the open — and from the afternoon London gold fix, chopped quietly sideways until shortly before 1 p.m. in New York trading.  They rallied a bunch from that juncture for the next hour — and then traded sideways until shortly after 3 p.m. EST — and they faded quietly into the close from there.  The HUI finished up 3.64 percent.

The silver equities gapped down a bit at the open, but managed to rally back to a hair above unchanged by the afternoon gold fix in London.  They chopped lower from there until minutes before 11:30 a.m. EST — and proceeded to chop quietly sideways until the silver price took off shortly before 1 p.m. in New York.  They were back in positive territory by a bit, by around 2:15 p.m. EST — and their respective high ticks were came a few minutes after 3 p.m.  They then proceeded to slide back into negative territory just before the 4 p.m. close.  Nick Laird’s Intraday Silver Sentiment/Silver 7 Index finished down 0.51 percent.  I was underwhelmed.  Click to enlarge if necessary.

And here’s the 1-year Silver 7/Silver Sentiment Index graph from Nick as well.  Click to enlarge.

The CME Daily Delivery Report showed that zero gold and zero silver contracts were posted for delivery within the COMEX-approved depositories on Friday.  The link to yesterday’s Issuers and Stoppers Report is here.

The CME Preliminary Report for the Wednesday trading session showed that gold open interest in November declined by 1 contract, leaving 6 still open.  Tuesday’s Daily Delivery Report showed that 1 gold contract was actually posted for delivery today, so the change in open interest and deliveries match.  Silver o.i. in November dropped by 3 contracts, leaving 3 still around.  Tuesday’s Daily Delivery Report showed that 3 silver contracts were actually posted for delivery today, so the numbers match in this precious metal as well.


There were no reported changes in either GLD or SLV on Wednesday.

There was a sales report from the U.S. Mint yesterday…only the second one this month.  They didn’t sell any gold, but did sell 415,000 silver eagles.

There was no physical gold movement either in or out over at the COMEX-approved depositories on the U.S. east coast on Tuesday.  But 9,497 troy ounces was transferred from the Registered category — and back into Eligible…6,563 troy ounces at HSBC USA — and 2,933 troy ounces at Brink’s, Inc.  I won’t bother linking this ‘activity’.

But it was a very interesting day in silver, as 625,835 troy ounces…one very large truckload…was received at Brink’s, Inc — and that was all the ‘in’ activity there was.  There was only 377,344 troy ounces shipped out, with the bulk of that amount…345,127 troy ounces…coming from Delaware.  There was also 29,260 troy ounces that departed CNT — and the remaining 2,956 troy ounces was shipped out of Brink’s, Inc.  But the real eye-opener was the transfer of a massive 8,339,413 troy ounces from the Registered category — and into Eligible.   The really big transfer was 6,709,755 troy ounces over at Brink’s, Inc…followed by 1,011,693 troy ounces over at Canada’s Scotiabank.  The remaining transfer was 617,963 troy ounces occurred at CNT.  Ted wasn’t sure what to make of this — and I left him thinking about it.  The link to all this ‘action’ is here.  It’s worth a look if you have the interest.

There was some activity over at the COMEX-approved gold kilobar depositories in Hong Kong on their Tuesday.  The reported receiving 990 of them — and shipped out 1,044.  All this occurred at Brink’s, Inc. — and the link to that, in troy ounces, is here.


The Staffordshire Hoard is the largest hoard of Anglo-Saxon gold and silver metalwork yet found. It consists of over 3,500 items, amounting to a total of 5.1 kg (11 lb) of gold, 1.4 kg (3 lb) of silver and some 3,500 pieces of garnet cloisonné jewellery.

The hoard was most likely deposited in the 7th century, and contains artifacts probably manufactured during the 6th and 7th centuries. It was discovered in 2009 in a field near the village of Hammerwich, near Lichfield, in Staffordshire, England.

I have an average number of stories for you today.


CRITICAL READS

How Will the Feds Get Out of This? — Bill Bonner

Yesterday, the stock market struggled to rally. Finally, it gave up, leaving the Dow down another 100 points.

Sooner or later, we presume, it will be down 1,000 points in a day – or more. Then, people will begin asking questions.

We’re prepared. We have some questions ready.

But first, let us pause for a couple of news items that stand out like “writing on the wall.” This from Reuters:

The U.S. federal government ran a $100 billion deficit in October, the first month of the new fiscal year, according to data released on Tuesday by the Treasury Department.

The deficit was in line with analysts’ expectations.

The Treasury said federal spending rose 18 percent from the year-earlier month to $353 billion in October, while receipts were up 7 percent to $253 billion.

Here’s a question: How come… in a booming economy… the feds are increasing spending more than twice as fast as revenue? Why do they have to borrow at all? And if they can’t balance the budget when times are flush, when can they?

This worthwhile commentary from Bill showed up on the bonnerandpartners.com Internet site early on Wednesday morning EDT — and another link to it is here.


“The Collapse Has Begun” – G.E. Is Now Trading Like Junk

Two weeks after we reported that GE had found itself locked out of the commercial paper market following downgrades that made it ineligible for most money market investors, the pain has continued, and yesterday General Electric lost just over $5bn in market capitalization. While far less than the $49bn wiped out from AAPL the same day, it was arguably the bigger headline grabber.

The shares slumped -6.88% after dropping as much as -10% at the lows after the company’s CEO, in an interview with CNBC yesterday, failed to reassure market fears about a weakening financial position. The CEO suggested that the company will now urgently sell assets to address leverage and its precarious liquidity situation whereby it will have to rely on revolvers – and the generosity of its banks – now that it is locked out of the commercial paper market.

Indeed, shares hit levels first seen in 1995 yesterday and have only been lower since, very briefly, during the financial crisis when they hit $6.66 in March 2009. For a bit of perspective, Deutsche Bank notes that the market cap of GE now is $69.5bn and it’s the 80th largest company in the S&P 500. Yet in August 2003, GE was the largest company in the index (and regularly the world between 1993-2005) at a market cap of $296bn, $12bn more than Microsoft in second place. Since then, the tech giant has grown to be a $826bn company well over 10 times the size, while GE’s market cap peaked (ironically) during the dot com bubble in August 2000 at $594BN before tumbling first in the tech crash and then the GFC.

But while most investors have been focusing on GE’s sliding equity, the bigger concern is what happens to the company’s giant debt load, especially if it is downgraded to junk.

This news item put in an appearance on the Zero Hedge website at 5:11 a.m. on Wednesday morning EST — and it comes to us courtesy of Brad Robertson.  Another link to it is here.


The Kiril Sokoloff Interviews: Stanley F. Druckenmiller

Investment visionary Kiril Sokoloff is embarking on a series of exceptional interviews from his personal contacts for Real Vision. In the second episode of his series, he sits down with a revered titan of the investment world: Stanley F. Druckenmiller. Druckenmiller has an unrivalled track record that spans many decades. But what might be most incredible is that even whilst becoming one of the world’s most successful money managers, Druckmiller has also managed to maintain an incredibly balanced and happy life. This interview provides an unrivalled opportunity to learn the previously unheard secrets of an investment legend. Kiril Sokoloff is the chairman & founder of 13D Global Strategy & Research.  This was filmed on September 6, 2018 in New York.

I found this video interview in a post over at the silverdoctors.com Internet site that Brad Robertson sent me very late last night.  It runs for 1 hour and 24 minutes — and was posted on the youtube.com Internet site on Tuesday.  I didn’t want to leave it for Saturdays’ column, so here it is now — and another link to it is here.


Brexit: Cabinet backs draft agreement

The prime minister was speaking after what she said was a “long, detailed and impassioned debate” in a five-hour cabinet meeting.

She said it was a “decisive step” in the progress of Brexit, and would allow the agreement to be finalised.

The E.U.’s chief negotiator said it was in both sides’ interests.

But leading Brexiteer Jacob Rees-Mogg described it as a “rotten deal“.

BBC political editor Laura Kuenssberg said the cabinet was “certainly not unanimous”, with nine ministers speaking out against the deal.

This story was posted on the bbc.com Internet site very late on Wednesday afternoon GMT — and I thank Swedish reader Patrik Ekdahl for sending it our way.  Another link to it is here.


Being America’s ally does not mean becoming a vassal state — Macron

French President Emmanuel Macron has said he wasn’t offended by a slew of angry tweets directed at him earlier this week by Donald Trump, saying that he understood the U.S. president was just playing to a domestic audience.

Macron, who was speaking to reporters on the Charles de Gaulle aircraft carrier, said that respect was due between the U.S. and France, two long-time allies, recalling that France was at America’s side during its fight for independence — something which many on Twitter also tried to remind Trump after he mocked French losses during both world wars.

At every moment of our history, we were allies, so between allies, respect is due,” Macron said. Asked about Trump’s tweets, the French president said: “I think he’s playing politics, and I let him play politics.”

Macron also said that being an American ally does not mean being a “vassal” state. “The United States are our historic ally and will continue to be. It’s the ally with which we take all the risks, with which we carry out the most complicated operations. But being an ally doesn’t mean being a vassal state,” he said.

At least he recognizes his country for what it is…a vassal state…as is every other E.U. country as well.  This short article appeared on the rt.com Internet site at 7:33 p.m. Moscow time on their Wednesday evening, which was 11:33 a.m. in Washington — EST plus 8 hours.  It was updated about an hour later.  I thank Patrik Ekdahl for pointing this out — and another link to it is here.


Italy refuses to back down in budget standoff with E.U.

Despite pressure from the European Commission, which rejected Rome’s budget outright last month in a first for the E.U., Italian Deputy Prime Minister Luigi Di Maio vowed to stand firm on the country’s anti-austerity plans.

The budget will not change, neither in its balance sheet nor in its growth forecast. We have the conviction that this is the budget needed for the country to get going again,” Di Maio, who leads the anti-establishment Five Star Movement (M5S), said Tuesday evening after a ministerial meeting.

M5S and its coalition partner, the far-right League party, insist the budget will help kick-start growth in the eurozone’s third largest economy and reduce the public debt and deficit.

The Commission gave Italy until Tuesday to make changes to its 2019 plans and warned non-compliance could activate the “excessive deficit procedure” (EDP), a complicated process that could lead to fines and possibly provoke a strong, adverse market reaction.

Italy intends to run a public deficit of 2.4 percent of gross domestic product in 2019 — three times the target of the government’s centre-left predecessor — and one of 2.1 percent in 2020.

This news story was posted on the france24.com Internet site yesterday sometime — and I thank Roy Stephens for sharing it with us.  Another link to it is here.


JPMorgan’s co-head of metals to leave around end of the year

Sid Tipples, joint head of JPMorgan’s metals business, will leave the bank around the end of the year, four sources familiar with the matter said.

JPMorgan’s metals operation is one of the world’s largest with global activity in both industrial and precious metals. Tipples is based in London and runs it together with Mike Nowak, who works in New York.

Hmmm…not that I want to read too much into this, but….  This tiny 2-paragraph Reuters article was filed from London very early on Tuesday morning EST — and I found it on the Sharps Pixley website.


How ex-JP Morgan silver trader’s guilty plea could boost manipulation claim against bank

A previously secret guilty plea by a former commodity trader at J. P. Morgan Chase, who admitted that he rigged precious metals markets, has drawn the attention of a lawyer who has already accused traders at the nation’s largest bank of similar conduct.

The lawyer, David Kovel, told CNBC he was struck by how much in common his civil case pending in New York federal court against J. P. Morgan Chase has with the conduct outlined in the ongoing criminal case in Connecticut against John Edmonds.

Edmonds, a 36-year-old Brooklyn resident, pleaded guilty in October to fraudulently manipulating the precious metals markets from 2009 to 2015.

He admitted working with “unnamed co-conspirators” at his former employer, J. P. Morgan, the Justice Department made public Nov. 6, when it unsealed the case in U.S. District Court in Connecticut.

Edmonds’ criminal plea related to “spoofing,” a certain type of improper trading that has been the subject of a broader regulatory crackdown on market manipulation in the decade since the 2008 financial crisis.

This rather interesting new item put in an appearance on the cnbc.com Internet site at 7:01 a.m. EST on Tuesday morning — and was updated about four and a half hours later.  This is the second story in a row that I’ve plucked from the Sharps Pixley website — and another link to it is here.


Shorts Crushed as Natural Gas Explodes Higher After Tripping Stops

While the investing community has been focused on crude oil for the past two weeks, and for obvious reasons as the black gold suffered a historic and record rout of 12 consecutive days of declines, sending it into a bear market from multi-year highs just a few weeks ago, a just as notable – if inverse – development has been taking place in natural-gas, whose prices have been soaring.

On Tuesday, a sudden change in weather forecasts pushed natural-gas futures to $4.10 per MMBTU, the highest level since November 2014. The rapid surge has rattled investors and traders, as the market goes into the winter heating season with less supplies in storage than any other year since 2005. Natural-gas prices have climbed 39% this year, and last week they entered a bull market, just as oil slumped into a bear.

Traders had expected record-high levels of natural-gas production would replenish stores for winter. However, as the WSJ notes, demand has climbed outside of weather-related catalysts, going toward rising exports and as a substitute for other energy sources like coal. “There’s a more structural base to the demand equation than others think,” said Kyle Cooper, a consultant at ION Energy Group in Houston.

Meanwhile, as prices rose, some suggested that one or more funds were caught short natural gas, hoping the rally would reverse sooner or later.  Click to enlarge.

Alas, for at least one of these shorts, the reversal did not come in time when this morning the price of the 1st month natural gas contract soared, spiking as much as 20% in minutes – the biggest intraday move higher since 2009 – with the price exploding higher once a barrier of stops at $4.40 was tripped, at which point furious short covering sent natural gas as high as $4.929 in just seconds, the highest since February 2014, when the U.S. experienced its “polar vortex” winter.

Now that‘s a short squeeze, dear reader.  This Zero Hedge news story appeared on their website at 7:41 a.m. on Wednesday morning EST — and I thank U.K. reader James O’Kelly for sending it along.   Another link to it is hereI also have the 6-month natural gas chart in The Wrap section as well.


What a world: ‘Sultan of Coins’ is hanged but Jamie Dimon and Blythe Masters live

Iran executed a gold dealer known as the “Sultan of Coins,” in a warning to merchants not to exploit the country’s financial troubles as U.S. sanctions squeeze the economy.

Vahid Mazloumin was sentenced to death in October after being accused by Iranian authorities of contributing to price hikes by hoarding gold. His assistant, Mohammad Esmail Qassemi, was also hanged early Wednesday, state-run Iranian Students News Agency said.

The very specter of sanctions, even before they were resumed in August, plunged the Iranian currency market into turmoil and sent the rial plummeting about 70 percent against the dollar, fueling a surge in prices and encouraging illegal trading.

Mazloumin didn’t hold a permit to trade gold and foreign currency, yet had formed the largest illegal network in that area, according to state-run Fars news agency. He instructed his team to corner the gold coin market to resell at higher prices, amassing about 2 tonnes of them, local media said.

The above headline to this Bloomberg story comes courtesy of Chris Powell.  I had several subscribers that sent me this story offer similar sentiments — and the thought crossed my mind as well.  This news story put in an appearance on their website at 9:34 p.m. Pacific Standard Time on Tuesday evening — and was updated six hours later.  The actual headline reads “Iran Hangs Gold Coin ‘Sultan’ in Crackdown After U.S. Sanctions” — and another link to it is here.  There was a story about this on the BBC‘s website — and it’s headlined “Iran executes ‘Sultan of Coins’ amid currency crisis” — and I thank Patrik Ekdahl for that one.  A Reuters story from the Sharps Pixley website on this issue is headlined “Iran executes two men accused of economic crimes“.


Rising Gold Price Vindicates RBI’s Investment Plan

The Reserve Bank of India’s gold purchase plan seems to be paying off as the monthly valuation gains have touched an eight month high with investor demand for a safe haven rallying the yellow metal.

The value of gold in the country’s foreign exchange reserves rose 1.7 per cent in three weeks from October 12 to November 2 at $20.9 billion. Gold prices rose 2 per cent during the same period.

India’s reserves are at $393 billion and gold comprises about 5 per cent of the total reserves.

According to the central bank, gold, including the gold deposits placed abroad, is revalued on the last business day of the month at 90 per cent of the average of the gold price quoted daily by London Bullion Market Association for the month. The rupee equivalent is determined on the basis of the exchange rate prevailing on the last business day of the month. Unrealised gains/ losses are credited/debited to the currency and gold revaluation account. With currency markets turning volatile since December after the US Federal Reserve started raising interest rates, which caused foreign investors to pull out their funds from the emerging markets including India, the Reserve Bank, like many other central banks, started buying gold as a hedge against volatile currency markets.

This gold-related news item, filed from Mumbai, showed up on the Economic Times of India website on Monday and, like the previous story, I found it in a GATA dispatch yesterday.  Another link to it is here.


China preserves gold reserve fiction yet again — Lawrie Williams

Despite a decline in the value of its overall Forex reserves in October, the Chinese central bank is still reporting unchanged gold tonnage in its reserve figures.  Bloomberg reports that the country’s total Forex reserves fell by US$33.9 billion to $3.053 trillion last month, which was lower than the median estimate of $3.059 trillion in Bloomberg’s survey of economists.

The ‘official’ Chinese gold reserve figure of 1,842.6 tonnes as reported to the IMF remains unchanged, as it has for the past two years.  We have claimed before that the Chinese Government and central bank have control over what is probably a far larger gold reserve, much of which is held in accounts the Chinese feel they have no need to report to the IMF as it is held outside its official Forex system.  The nation has a track record of moving large amounts of gold into its official reportable reserve holdings as and when it feels it opportune to do so – the last time being an increase of around 600 tonnes in July 2015.

As we have noted in these columns before, China reported zero increases in its gold reserve from late 2002 to April 2009 and then again from April 2009 until the July 2015 increase and on each occasion then reported massive increases, presumably built up over the previous 6 years, but held in some unspecified accounts which the Chinese government felt no need to report – at least that’s what they said at the time. (From July 2015, somewhat cynically, the country did report monthly gold reserve increase for the 15 months prior to the yuan’s final acceptance into the IMF’s special drawing right (SDR) basket of currencies but once this acceptance was confirmed, China abruptly ceased to report any monthly increases in its gold reserve. Draw your own conclusions!).

This worthwhile commentary from Lawrie appeared on the Sharps Pixley website on Wednesday sometime — and another link to it is here.


The PHOTOS and the FUNNIES

This is another award-winning photo given out by the Natural History Museum in London this year.  It’s another from the ‘Animals in their Environment’ category — and this one is by U.S. photographer Tony Wu — and is entitled “Looking for Love”.

Tony was on a mission – he wanted to capture an image that portrayed the ‘unique expression and burning desire of a male in love’. His subject was the Asian sheepshead wrasse, a fish found near Japan’s Sado Island. After years of planning, and amid torrential rain, he finally found an earnest suitor for his portrait. ‘This,’ he says, ‘is the face of a fish looking for love’.

If there are no dominant males in the school of Asian sheepshead wrasse, larger, older female wrasse will change sex. The transformed fish will use its bulbous head, which turns red in the breeding season, to gain control over other males, attracting a harem of females in the process. It will then mate with these females dozens of times a day.  Click to enlarge.


The WRAP

JPMorgan set a new intraday low for this move down in silver again yesterday — and I was somewhat surprised that they didn’t do it in gold while they were at it, because they had every opportunity to do so at the morning gold fix in London.

Then there were those price spikes out of the blue around 12:45 p.m. in New York.  What to make of that, one wonders?   Silver did not break above its 50-day moving average on Wednesday, but gold certainly did — and closed above it as well.  But that particularly price activity occurred after the COMEX close — and gold volume wasn’t particularly heavy yesterday despite that fact.

Ted mentioned on the phone yesterday that silver volume was pretty heavy when the new intraday low in silver was set yesterday morning, but backed off substantially after that.

Here are the 6-month charts for all four precious metals, plus copper and WTIC once again.  And it should be carefully noted that whatever price action occurred after the COMEX close…including gold and silver’s respective high ticks of the day, doesn’t appear on their respective dojis.  It should also be noted that platinum broke through its 50-day moving average on an intraday basis as well.

I’ve also included the 6-month chart for natural gas, so you can see how that short-covering rally has developed over the last several days.  That’s what a real short covering rally is supposed to look like — and it’s coming soon to silver and gold as well…hopefully soon.

The ‘click to enlarge‘ feature only helps with the four precious metal charts.

And as I type this paragraph, the London open is less than ten minutes away — and I see that the gold price edged a few dollars lower until shortly before 10 a.m. China Standard Time on their Thursday morning.  It has been creeping higher since — and is currently up $1.00 the ounce.  It was about the same for silver, but it was tapped gently lower once it attempted to break above $14.21 spot.  At the moment, it’s up 5 cents.  Platinum didn’t do much until the 2:15 p.m. afternoon gold fix in Shanghai, but from that point it rallied a bit — and is up 2 bucks.  Palladium was sold down a few dollars until half past lunchtime CST — and has also rallied a bit since — and is up 3 dollars.  I note that all four precious metals are off their current high ticks by a bit as the London/Zurich opens loom.

Net HFT gold volume is pretty light…coming up on 35,500 contracts — and there’s only 885 contracts worth of roll-over/switch volume in that precious metal.  Net HFT silver volume is a bit over 9,000 contracts — and there’s 1,026 contracts worth of roll-over/switch volume on top of that.  That’s very quiet volume as well.

The dollar index began chopping quietly lower once trading began at 6:00 p.m. EST in New York yesterday evening — and its current 96.77 low tick came about 2:50 p.m. China Standard Time on their Thursday afternoon.  It has crawled a bit higher since — and is down 12 basis points as of 7:30 a.m. in London.

I’m still not sure what should be read into those 12:45 p.m. price spikes in gold, silver — and a bit in platinum as well.  As is most always the case, there has been zero follow-through in Far East trading on their Thursday morning, so whatever it was, it certainly appears to have been confined to the COMEX trading session in New York.

And as I post today’s efforts on the website at 4:04 a.m. EST, I see that the tiny dollar index rally that developed about an hour or so before the London open, ended at that exact moment, but has ticked higher again in the last few minutes.  And because of that, all four precious metals have been sold off their new current high ticks of the day by decent amounts.  Gold is now up only $2.50 the ounce — and silver is up only 3 cents now.  Platinum is up 1 dollar — and palladium is up 2 bucks.

Gross gold volume is a bit over 48,000 contracts — and net of roll-over/switch volume out of December and into future months, net HFT gold volume is about 45,700 contracts.  Net HFT silver volume is 12,000 contracts — and there’s 1,409 contracts worth of roll-over/switch volume in this precious metal.

As I mentioned two paragraphs ago, the dollar index got hit precisely at the 8:00 a.m. GMT London open — and it was down over 20 basis points at its low, but has rallied back in the last fifteen minutes — and is down 12 basis points as of 8:30 a.m. in London.

The big news in the silver industry on Wednesday was the word that Pan American Silver bought up Tahoe Resources for around $1 billion…which reader ‘Mark’ thought was a steal.  It will be seen that way if/when they’re allowed to get the Escobal silver mine in Guatemala back up and running.  I own shares in both companies.

That’s all I have for today, which is more than enough — and I’ll see you here tomorrow.

Ed