New Intraday Lows in Gold & Platinum Yesterday

22 May 2019 — Wednesday

YESTERDAY in GOLD, SILVER, PLATINUM and PALLADIUM


The gold price began to edge a few dollars lower about two hours after trading began in New York on Sunday evening — and that ended around noon in Shanghai on their Tuesday morning.  From that point it chopped quietly sideways until shortly after 11 a.m. in London — and its downward journey to its low tick of the day began at that juncture.  That was set around 9:40 a.m. in New York — and was a new intraday low price for gold for this move down.  It rallied a bit from there until the 11 a.m. EDT London close — and it chopped unevenly sideways until trading ended at 5:00 p.m. EDT.

The high and low ticks certainly aren’t worth looking up.

Gold was closed on Tuesday in New York at $1,274.20 spot, down $3.10 on the day.  Net volume was very quiet for the second day in a row at just about 166,500 contracts — and there was around 47,500 contracts worth of roll-over/switch volume out of June and into future months.

Except for an odd variation here and there, the silver price was forced to follow a similar price as gold yesterday, so I shan’t bother with any further commentary on it.

The high and low ticks aren’t worth looking up in this precious metal, either.

Silver was closed at $14.425 spot, down a penny from Monday.  Net volume, like in gold, was very much on the lighter side at a bit under 45,500 contracts — and there was 2,537 contracts worth of roll-over/switch volume on top of that.

The platinum price didn’t do much of anything in morning trading in the Far East on their Tuesday.  It jumped up a bit staring shortly after 12 o’clock noon CST, but it was all unevenly down hill from there until, like silver and gold, its low tick of the day was set around 9:40 a.m. in New York.  It chopped erratically higher from there until shortly after 2 p.m. in the thinly-traded after-hours market, before trading flat into the 5:00 p.m. EDT close from there.  Platinum finished the day at $815 spot, up 2 bucks from Monday’s close, but set a new intraday low price for this engineered price decline.

The palladium price was up 6 bucks by the Zurich open on their Tuesday morning.  But shortly after that it began to chop unevenly lower — and that lasted until about fifteen minutes after the Zurich close — and it didn’t do a lot after that.  Palladium was closed at $1,303 spot, down 11 dollars on the day.

The dollar index closed very late on Monday afternoon in New York at 97.93 — and opened down about 1 basis point once trading commenced at 7:44 p.m. EDT on Monday evening, which was 7:44 a.m. China Standard Time on their Tuesday morning.  It began to creep quietly higher from that point until about twenty minutes before the London open — and from that juncture it chopped unevenly sideways until a waterfall decline event began at 10:52 a.m. in New York.  The index was saved by the usual ‘gentle hands’ at precisely 11:00 a.m. EDT, which was the London close. It ‘gained’ all of that loss back, plus a bit more, by 2:12 p.m. in New York — and then proceeded to tick quietly lower until trading ended at 5:15 p.m. EDT.

The dollar index finished the Tuesday session at 98.06…up 13 basis points from Monday’s close — and you should note that the waterfall decline in the dollar index has zero effect on precious metal prices.

Here’s the DXY chart courtesy of BloombergClick to enlarge.

Here’s the 6-month U.S. dollar index chart, courtesy of the folks over at the stockcharts.com Internet site — and the delta between its close…97.90…and the close on the DXY chart above, was 16  basis points on Tuesday.  Click to enlarge as well.

The gold stocks opened down a bit once trading began at 9:30 a.m. in New York on Tuesday morning — and their respective low ticks were printed a few minutes before 10 a.m. EDT.  They were back at the unchanged mark about thirty-five minutes later — and then traded quietly and unevenly sideways for the remainder of the day.  The HUI managed to close up 0.24 percent.

The silver equities hit their lows at the same time as the gold shares — and from there they rallied rather smartly until around 11:20 a.m. EDT — and then didn’t do much of anything after that.  Nick Laird’s Intraday Silver Sentiment/Silver 7 Index closed higher by 1.18 percent.  Click to enlarge if necessary.

And here’s Nick’s 1-year Silver Sentiment/Silver 7 Index chart updated with Tuesday’s doji.  Click to enlarge as well.

The CME Daily Delivery Report showed that zero gold and 29 silver contracts were posted for delivery within the COMEX-approved depositories on Thursday.

In silver, the three short/issuers were JPMorgan, ADM and Advantage…with 14, 8 and 7 contracts…all out of their respective client accounts.  There were four long/stoppers in total — and JPMorgan topped the list as usual, with 15 in total…11 for clients, plus 4 for its own account.  ADM came in second with 10 contracts for its client account.  Advantage and Standard Charter were tied for third spot, with 2 each…the former for its client account — and the latter for its in-house/proprietary trading 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 May declined by 15 contracts, leaving 58 still open.  Monday’s Daily Delivery Report showed that 15 gold contracts were actually posted for delivery today, so the change in open interest and the deliveries match.  Silver o.i. in May fell by 2 contracts, leaving 225 around, minus the 29 contracts mentioned a few paragraphs ago.  Monday’s Daily Delivery Report showed that 13 silver contracts were actually posted for delivery today, so that means that 13-2=11 more silver contracts were just added to the May delivery month.


There was a deposit into GLD on Tuesday, as an authorized participant added 113,265 troy ounces.  There was a withdrawal from SLV, as an a.p. removed 749,430 troy ounces.

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

There was a bit of movement in gold over at the COMEX-approved depositories on the U.S. east coast on Monday.  Nothing was reported received — and 11,831 troy ounces was shipped out.  The vast majority of that…10,995.300 troy ounces/342 kilobars [U.K./U.S. kilobar weight] departed JPMorgan.  There was 803.750 troy ounce/25 kilobars [U.K./U.S. kilobar weight] shipped out of Scotiabank — and 1 kilobar [SGE kilobar weight]…32.151 troy ounces…that left Brink’s, Inc.  There was also 4,883 troy ounces transferred from the Registered category — and back into Eligible.  Of that amount, there was 2,712 troy ounces transferred at HSBC USA — and the remaining 2,170 transfer occurred at Brink’s, Inc.  The link to all that is here.

In silver, the only physical activity was two truckloads…1,209,235 troy ounces…that ended up at Loomis International.  The only other activity was a transfer from Eligible and into Registered over at CNT…59,155 troy ounces…and I would suspect that this amount is out for delivery in May.  The link to that is here.

There was some activity over at the COMEX-approved gold kilobar depositories in Hong Kong on their Monday.  They received 2,150 of them — and shipped out 34.  And except for the 9 kilobars shipped out of Loomis International, all of the remaining in/out movement occurred at Brink’s, Inc.  The link to that, in troy ounces, is here.


There are two notable Ipswich Hoards. The first was a hoard of Anglo-Saxon coins discovered in 1863. The second was a hoard of six Iron Age gold torcs that was discovered in 1968 and 1969. The latter hoard has been described as second only to the Snettisham Hoard in importance as a hoard from the Iron Age, and is held at the British Museum.

The first hoard was found in an earthenware pot buried about 10 feet (3.0 m) beneath the doorstep of the house at the corner of Old Buttermarket and St. Lawrence Lane in Ipswich, which had previously belonged to numismatist James Conder (1763–1823), when it was demolished during road widening in 1863. It was reported as consisting of 150 coins, although only 75 are known now. The coins were all silver pennies of the reign of Æthelred the Unready, minted in London and Ipswich. It is tempting to associate this find with the ravaging of Ipswich which took place in 991. However clues in the coins indicate that the hoard may have been deposited between 979 and 985.

Five neck ornaments called torcs were discovered in 1968 by the operator of a mechanical digger preparing ground for the construction of new housing in Belstead, near Ipswich, for which the driver received £45,000; a sixth torc of a slightly different design was discovered a year later by the owner of one of the newly completed houses when sorting though a pile of earth left by the building in his garden, for which he received £9,000.

The torcs were manufactured by twisting two strands of large diameter wire around each other and fashioning them into a near circle. The ends of the twisted wire are finished with terminal decorations. They are made from green gold as they have a lower proportion of silver in them than later finds, leading British Museum experts to date their manufacture to about 75 B.C. However the torcs may have been used by many generations before they were hoarded away.  Click to enlarge.

I have an average number of stories for you again today.


CRITICAL READS

Existing Home Sales Tumble YoY For 14th Month — Worst Run Since Housing Crisis

Existing home sales were the odd one out in March (falling as new- and pending-home-sales spiked) but expectations were for a catch-up rebound in April, but did not, dramatically missing the expectation of a 2.7% rise by dropping (again) by 0.4% MoM…

This 0.4% decline comes after existing home sales fell 4.9% MoM in March with a tumbling mortgage rate seemingly not affecting the secondary market…

Single-family units fell 1.1% MoM but Condos/Co-ops jumped 5.6% in April (erasing March’s 5.3% drop).

Supply increased from 3.8 to 4.2 months (the highest since Oct 2018) as median prices jumped to their highest since July 2018.

Only The West saw an increase in sales (up 1.8% MoM) in April, with the Northeast worst, down 4.5% MoM.

Worse still, existing home sales are still down 4.4% year-over-year…Click to enlarge.

This is the 14th month in a row of annual declines – the longest stretch since the housing crisis over a decade ago…but that’s probably nothing!!

This story, courtesy of Brad Robertson, was posted on the Zero Hedge website at 10:08 a.m. EDT on Tuesday morning — and another link to it is here.


QE May Be Over, But the Fed’s U.S. Debt Hoard Is About to Soar

If you thought the Federal Reserve was done with quantitative easing, you might only be half right.

As soon as next year, analysts say the Fed will resume large-scale buying of debt securities — this time just U.S. Treasuries — in amounts that may ultimately exceed its crisis-era purchases. According to an estimate by Wells Fargo & Co., the central bank’s balance sheet will rise past its historic peak as it adds over $2 trillion to its Treasury debt holdings in the next decade.

Of course, it won’t be called QE, which President Donald Trump has urged the Fed to restart. Rather than trying to drive down long-term interest rates to boost growth, the purchases are intended to replace the Fed’s mortgage-bond holdings gradually as they mature and to keep ample reserves in the banking system. But the effect, some say, will nevertheless be largely the same.

For anybody that has been in the market for the last 10 years, it will feel like QE,” said Priya Misra, global head of rates strategy at TD Securities. “Once again the Fed will be the single largest buyer of Treasuries and (this time) in a non-QE world. This will be a very bullish Treasury-market dynamic.”

This Bloomberg news story showed up on their Internet site at 2:00 a.m. PDT on Monday morning — and was updated twelve hours later.  I found it in a GATA dispatch yesterday — and another link to it is here.


Regime Change For the Fed: Honest Rates — Jim Grant

James Grant was one of three recipients of the 2019 Bradley Prize. Roger Kimball and Judge Janice Rogers Brown were likewise honored. At the May 7 award ceremonies at Washington, the famed editor of Grant’s Interest Rate Observer had this to say:

* * *

Ladies and gentlemen, it’s a blemish on the age that so many of us know the name of the Federal Reserve chairman. In a better world, that government functionary would be as obscure as what’s-his-name, the home plate umpire who got no arguments calling balls and strikes at Yankee Stadium the other night.

Who elected the Greenspans, Bernankes, and Powells to be the arbiters of interest rates, asset prices, the rate of inflation and who knows what else? It wasn’t Alexander Hamilton. Nor was it the Fed’s own founders. If the authors of the 1913 Federal Reserve Act could return to earth to inspect their handiwork, the shock might kill them all over again.

Congress envisioned an institution to function in the context of the international gold standard. This meant a dollar defined as a fixed weight of gold. You should have heard old Carter Glass, the congressional father of the Fed, berate the critics who dared to suggest that he was scheming to replace the gold dollar with a scrap of green paper.

Well, Glass himself is to blame for much of the evil that followed. The legislative preamble to the act that Woodrow Wilson signed describes a bill “to furnish an elastic currency, to afford means of discounting commercial paper, to establish a more effective supervision of banking in the United States—and for other purposes.”

These other purposes quickly became the principal ones. No sooner did America enter the Great War than the Fed lent a hand to facilitate the government’s borrowing. By the time the system celebrated its 30th birthday, in 1943, the central bank was pegging interest rates to suppress the costs of financing an even greater war.

This interesting commentary from Jim appeared on The New York Sun‘s website on Sunday sometime — and I found it in a Zero Hedge article that Brad Robertson sent our way.  Another link to it is here.


Dr. Dave Janda interviews your humble scribe…

The good doctor and I spent about twenty-five minutes discussing the state of the world — and the precious metals.  I was going to include this in my Tuesday column, but there was enough content in that already, so here it is today.

This audio interview was on all-talk radio WAAM 1600 out of Ann Arbor, Michigan — and another link to that is here.


Thousands of jobs at risk with British Steel on brink of collapse

Britain’s second-largest steel producer is on the brink of collapse amid growing signs that an emergency government loan would fail to materialise, putting a total of close to 25,000 jobs at risk.

Sky News has learnt that British Steel, its lenders and Whitehall are preparing for an insolvency to take place within 48 hours, with E&Y expected to be formally appointed as administrators on Wednesday unless a deal is struck by Tuesday afternoon.

If last-minute talks fail to secure a solvent deal, British Steel’s collapse could result in more than 4,000 redundancies at its giant Scunthorpe steelworks, job cuts at its other sites, and as many as 20,000 more jobs in its supply chain also jeopardised by the crisis.

Insiders said that a request to the government for emergency financial support had been reduced from £75m to around £30m, with British Steel’s shareholder – Greybull Capital – and lenders agreeing to inject new money into the company.

Lenders are also understood to have released their security in order for a new government loan to be made on secured terms.

This story showed up on the sky.com Internet site on Monday sometime, but has been updated since — and I thank Swedish reader Patrik Ekdahl for pointing it out.  Another link to it is here.


Deutsche Bank Death Spiral Hits Historic Low. European Banks Get Re-Hammered — Wolf Richter

Just bumping along the bottom, from hopeless to hope and back to hopeless…

The amazing thing with Deutsche Bank shares is this: Since 2007, so for 12 years, bottom fishers have been routinely taken out the back and shot, every time, with relentless regularity – as have big institutional investors, from Chinese conglomerates to state-owned wealth funds, that thought they were picking the bottom. A similar concept applies to European banks in general. May 2007 was the high point. And it has been brutal ever since – 12 years of misery.

Deutsche Bank shares dropped another 2.9% on Monday in Frankfurt, and closed at a new historic low of €6.64 after hitting €6.61 intraday. This time, the blame was put on UBS analysts that finally stamped “sell” on the stock, replacing their “neutral” rating. Deutsche Bank’s market cap is now down to just €13.8 billion. Shares have plunged 39% over the past 12 months and 60% since January 2018…

The bank has been subject to years of revelations of shenanigans that span the palette. Once a conservative bank that primarily served its German business clientele in Germany and overseas, it decided to turn itself into a Wall Street high-flyer that caused its shares to skyrocket until May 2007, when it got tangled up in the Financial Crisis that then led to a slew of apparently never-ending hair-raising revelations, settlements with regulators, and huge fines.

Since their death-spiral began in May 2007, Deutsche Bank shares have lost over 94% of their value. The UBS downgrade to sell came just in the nick of time.

This very interesting 5-chart commentary from Wolf put in an appearance on the wolfstreet.com Internet site on Monday sometime — and I thank Richard Saler for sharing it with us.  Another link to it is here.


Amid Soaring Inflation, Turkey Bizarrely Cuts Rates; Lira Tumbles

What do you do if you have borderline hyperinflation coupled with accelerating capital flight and a collapse of international confidence in your country’s institutions? In Turkey, the answer is apparently to cut rates.

That’s what the Turkish central bank did early on Tuesday when it effectively rolled back a limited tightening of monetary policy which it delivered just days prior in the latest policy flip-flop by an increasingly chaotic monetary authority, hammering the lira – which is desperate for higher rates – just weeks before President Erdogan’s party seeks to regain control of Istanbul in a bizarre and controversial rerun of local elections.

Two weeks after the Turkish central bank tightened monetary policy, a move which did nothing to boost confidence in the lira, the regulator went for broke and on Tuesday said that it will offer funds at its cheapest rate of 24% through the repo auction, 150 basis points lower than the overnight rate of 25.5% it used for almost two weeks. Today’s announcement came less than a week after Turkey re-introduced a 0.1% tax on most large foreign-currency transactions, a sign the authorities are trying to stem the dollarization of the economy before municipal elections in Istanbul in June.

The panicked decision follows a slew of failed measures meant to prop up the currency before next month’s elections. As Bloomberg noted, “some of these steps have raised concern that the government is taking on a larger role in managing the market“, which is a polite way of saying Turkey is preparing to implement capital controls next. Officials have repeatedly said Turkey would adhere to free-market policies.

This Zero Hedge news item put in an appearance on their Internet site at 7:00 a.m. on Tuesday morning EDT — and it’s another contribution from Brad Robertson.  Another link to it is here.


Pentagon Declares Victory in Non-War: Iran Forced to Put Attacks “On Hold

And just like that it’s over — war averted, apparently, as the Pentagon announced Tuesday U.S. defense posturing and military build-up in the Persian Gulf has thwarted potential attacks an Americans.

Defense Secretary Patrick Shanahan said Iran was forced to “put on hold” plans to harm American troops and their allies in the region:

I think our steps were very prudent and we’ve put on hold the potential for attacks on Americans and that is what is extremely important,” Shanahan told reporters at the Pentagon, though without giving specifics.

He added that Iran was ultimately forced to “recalculate” its aggression.

Since John Bolton’s May 5th statements citing “credible intelligence” of a heightened Iran threat which supposedly put U.S. troops in the cross hairs there’s been next to nothing in terms of actual details.

Instead the past two weeks has witnessed incessant blustering out of Washington, with daily threats that military action was looming against Iran.

And now with zero evidence that Iran was readying an attack, the Pentagon is essentially declaring victory following statements by Trump that he is not willing to escalate, but instead telling Iran’s leaders to “call me“.

This news item put in an appearance on the Zero Hedge website at 10:25 p.m. EDT on Tuesday night — and another link to it is here.


OPEC is poised to defy Trump once again by keeping a lid on oil output

Major oil-producing nations are leaning toward keeping a lid on production throughout 2019, defying President Donald Trump’s calls to open the taps and cut the cost of crude.
OPEC and a group of allies led by Russia are trying to keep supply and demand in balance and stabilize prices by pumping less oil. Over the weekend, a committee representing the so-called OPEC+ alliance strongly signaled the group will extend the policy, which has helped to boost oil prices by about $20 a barrel this year.

If OPEC+ follows that course when producers meet in June, it would be the second time in six months the group ignored Trump, who lobbied against the current production cuts last fall. So long as the production caps remain in place, oil prices are likely to remain anchored near six-month highs around $63 a barrel.

That would keep a thorn in Trump’s side. The economy-focused president wants to lower prices at the pump, but his foreign policy is putting upward pressure on oil futures, which in turn increases gasoline costs.

Washington has restricted global oil supplies by slapping sanctions on OPEC members Iran and Venezuela. Trump wants his allies in Saudi Arabia and the United Arab Emirates, two of OPEC’s biggest producers, to offset those losses by pumping more oil.

This article was posted on the cnbc.com Internet site at 12:21 p.m. EDT on Monday — and was updated about three and a half hours later.   I thank Swedish reader Patrick Ekdahl for finding it for us — and another link to it is here.


Top Primary Miners Now Paying the Market $2 to Take Their Silver??

According to the poor financial results in the first quarter of the year, the top primary silver miners are now likely paying the market $2 an ounce to take their silver.  And, the financial situation for these silver producing companies may even worsen in the second-quarter if the oil price continues to increase while the silver price remains weak.

I have to say; it is a real shame that the few companies in the world that are producing REAL WEALTH are not being paid a decent price for their product.  While the Amazons, Netflixes, Apples, and Facebooks of the world are providing a great deal of technology and service to the market, these companies and their products are not “Stores of Value.”

Why?  Well, as soon as a new Apple I-phone is sold, it begins to deteriorate and likely becomes obsolete (or broken) within five years, which is precisely why the company makes a fortune upgrading and providing new I-phones.  Don’t get me wrong, I have to applaud Apple for developing a high-tech consumption racket for the masses, but again, they are not stores of wealth.  Furthermore, it takes a tremendous amount of energy in the massive supply-chain system to provide these increasingly complex and advanced I-phones.

Moreover, highly advanced technologies don’t last as long as they are inherently fragile. I can assure you that if you take an I-phone and a silver coin and place them in a chest underwater for 100 years, the silver coin will still be usable, but the I-phone will be toast.  Thus, the reason gold and silver win the title of being the top “Stores of Wealth.”

I’m in no position to comment on the veracity of the facts and figures in this article, so I’ll leave this to your good judgement, dear reader.  But when I sent the article to Ted for his opinion…this is what he had to say…”No basic argument, except he leaves out the most important point, namely, why is the price so low?”  Yes, dear reader, the author fails to mention the glaringly obvious reason for the silver miner’s woes — and because of that fact, I’m wondering what else has been left out.  This item was posted on the srsroccoreport.com Internet site on Tuesday sometime — and I thank Marvin Wieler for sending it our way.  Another link to it is here.


Russia adds another 15.6 tonnes to gold reserves in April — Lawrie Williams

The Russian central bank has announced that it added a further 500,000 ounces (!5.6 tonnes) to its gold reserves in April, keeping it ahead of China in its announced monthly gold accumulations, but a little below its March figure of 600,000 ounces.  Even so, it is comfortably on track after four months of the year have passed to again accumulate over 200 tonnes of gold in the full year.

It will not have gone without notice that the Bank of Russia almost always announces its gold reserve increases in round numbers – usually to the nearest 100,000 ounces – but the likelihood is perhaps that this is just an announced figure — and the true accumulation which, in due course will be passed on to the IMF for its world gold reserve statistics, will be marginally higher or lower.

Overall, if we incorporate the latest increase as announced into the IMF figure for Russian central bank gold holdings we come up with a figure of around 2,184 tonnes of gold as the world’s fifth largest national holder of gold, which puts it within spitting distance of the World’s No.s 3 and 4, Italy and France which respectively report their gold holdings at 2,451.8 tonnes and 2,436.0 tonnes.  At its current gold accumulation rate, Russia could move ahead of both of these by early next year.

Russia has been the largest annual accumulator of gold for some years now, at least as far as figures reported to the IMF go.  (We have always held the opinion that China has been increasing its gold reserves at a faster pace than it has been reporting to the IMF, but hiding this excess gold in accounts it says does not meet the criteria for reporting as part of its official forex reserves).

Russia, however, seems to have been following a conscious policy of replacing most of its U.S. dollar-related holdings in its forex mix given the imposition of mostly Crimea-related U.S. economic sanctions.  With U.S. under the Trump Administration seeming increasingly willing to impose economic weapons against countries which it deems to be unfriendly, it would not be too surprising if some other countries were to follow the Russian lead.

This worthwhile commentary from Lawrie showed up on the Sharps Pixley website on Tuesday morning BST in London — and another link to it is here.


Gold Bar Imports Slipped by 4% in India, but…

The latest trade data published by the Gem & Jewellery Export Promotion Council (GJEPC) indicates that gold bar imports by the country witnessed marginal decline during the month of April this year.

The gold bar imports by the country totaled $612.98 million in April this year. This is slightly lower by 4.17% when compared with the imports of $639.67 million in April 2018. In rupee terms, the imports totaled INR 4,255.95 crores, slightly higher by 1.36% over the previous year. The imports had totaled INR 4,198.81 crores in April 2018.

Meantime, the country witnessed huge surge in silver bar imports. The imports of silver bar totaled $2.13 million, significantly higher by nearly 46% year-on-year when compared with the imports of $1.46 million in April last year. In rupee terms, the imports surged higher by 55% from INR9.57 crores to INR 14.79 crores over the year.

The strong trend in imports of gold and silver jewellery continued in April as well. The gold jewellery imports at $28.51 million were significantly higher by 14.41% from $24.92 million in April 2018. The silver jewellery imports were up marginally by nearly 2% from $5.24 million to $5.32 million year-on-year.

This precious metal-related article, filed from Seattle, was posted on the scrapmonster.com Internet site on Tuesday — and it’s another story that I found on the Sharps Pixley website.  Another link to it is here.


The PHOTOS and the FUNNIES

Continuing on our tour around Hope, B.C. on April 13, where spring was well advanced on Canada’s west coast…here are three more shots.  All were taken in Thacker Regional Park in the town.  The flower is a member of the Trillium family, I believe.  Click to enlarge.


The WRAP

Don’t be afraid to take a big step if one is indicated; you can’t cross a chasm in two small jumps.” — David Lloyd George


Although all was quiet from a volume perspective in the precious metals, ‘da boyz’ did not pass on the opportunity presented, setting new intraday lows in gold, platinum and copper on Tuesday.  They obviously could have done more price damage than they did, but passed on it for some reason.  Maybe they didn’t want to become even more conspicuous about all this than they already are.

And with the gold price currently situated where it is, I would suspect that its 200-day moving average is now firmly within their sights.  As to how long this will take them, nobody knows.  All we can do is wait it out.

Here are the 6-month charts for the Big 6 commodities once again — and the above changes should be noted.  Click to enlarge.

And as I type this paragraph, the London open is dead ahead — and I note that the prices of all four precious metals have been edging very quietly and unsteadily lower in Far East trading on their Wednesday. Gold is down 90 cents the ounce at the moment — and silver by 3 cents. Platinum is down 6 bucks — and palladium by 5.

Net HFT gold volume is pretty light at a bit under 27,000 contracts — and there’s only 879 contracts worth of roll-over/switch volume on top of that. Net HFT silver volume is exceedingly light at a bit over 5,100 contracts — and there’s only 896 contracts worth of roll-over/switch volume in this precious metal.

The dollar index opened down 5 basis points once trading began at 7:44 p.m. EDT in New York on Tuesday evening, which was 7:44 a.m. China Standard Time on their Wednesday morning. It didn’t do much from there until around 9:35 a.m. CST — and has been creeping very quietly and unevenly higher since. As of 7:45 a.m. BST in London/8:45 a.m. CEST in Zurich, the dollar index is up 2 basis points.


Yesterday, at the close of COMEX trading, was the cut-off for this Friday’s Commitment of Traders Report — and it’s going to be an easy call. All four precious metals were closed lower almost every trading day during the reporting week…particularly gold, silver and platinum…so it’s a given that there will be further long selling and shorting by the Managed Money traders during the reporting week. It was precisely those actions that caused these price declines in the first place. All of last week’s deterioration…and then some… will have vanished.

Ted will have his mid-week commentary for his paying subscribers this afternoon — and I’m sure he’ll have something to say about this.  I’ll ‘borrow’ a couple of sentences for my Friday column so you can see what his thoughts are.


And as I post today’s efforts on the website at 4:02 a.m. EDT, I see that gold and silver prices have edged a bit lower during the first hour of London trading. Gold is now down $1.70 the ounce — and silver is down 5 cents. Platinum is down 5 bucks, but palladium, which had been down 11 dollars at one point, is now down only 4 dollars — and I’m disregarding that vicious down/up spike moments before 10 a.m. CEST, as it’s probably in the front month only.

Gross gold volume is 37,000 contracts — and minus roll-over/switch volume out of June and into future months, net HFT gold volume is still very light at around 30,500 contracts. Net HFT silver volume is still extremely light at about 6,600 contracts — and there’s 934 contracts worth of roll-over/switch volume on top of that.

The dollar index continues to creep almost Imperceptibly higher — and is now up 5 basis points as of 8:45 a.m. in London/9:45 a.m. in Zurich.

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

Ed