‘Da Boyz’ Hammer Silver Back Below Its 50 and 200-Day Moving Averages

11 June 2019 — Tuesday

YESTERDAY in GOLD, SILVER, PLATINUM and PALLADIUM


The gold price got smacked for about seven bucks the moment that trading began at 6:00 p.m. EDT in New York on Sunday evening…which probably might have had something to do with the 11 basis point mark-up in the U.S. dollar index at the same time…although ‘da boyz’ could have used it as a fig leaf to hide behind, which they’ve done on countless occasions.  It crawled a bit higher from there until around 8:45 a.m. China Standard Time on their Monday morning — and it was sold lower once again, with most of the price damage that mattered coming shortly after 9 a.m. in London.  It was bounced off that low price a couple of more times…once at 1 p.m. in London — and then again at the 1:30 p.m. EDT COMEX close.  It rallied a few dollars after that until 2 p.m. in the thinly-traded after-hours market — and didn’t do anything after that.

The high and low ticks in gold were recorded by the CME Group as $1,341.70 and $1,329.00 in the August contract…not even one percent.

Gold was closed in New York yesterday at $1,327.40 spot, down $12.50 on the day.  Net volume was only slightly elevated at a bit over 216,000 contracts — and there was a hair over 14,000 contracts worth of roll-over/switch volume on top of that.

The commercial traders in silver went after the Managed Money trader in a similar fashion to gold — and from 10 a.m. CST onwards, it was sold quietly lower until the COMEX close in New York, which was basically its low of the day.  I’m ignoring that down/up price spike just before 1 p.m. in New York, as it only occurred in the spot month.  It rallied a few pennies into the 5:00 p.m. EDT close from there.

The high and low ticks in silver were reported as $15.01 and $14.625 in the July contract.

Silver was closed on Monday at $14.665 spot, down 30.5 cents from Friday.  Both its 50 and 200-day moving averages were taken out on that engineered price decline yesterday.  Volume was on the heavier side at a bit over 76,000 contracts, but not that heavy.  Roll-over/switch volume out of July and into future months was pretty robust at 21,500 contracts.

Platinum’s rally that began at 6:00 p.m. in New York on Sunday evening, ran into ‘something’ a  minute or so before 8 a.m. in Shanghai on their Monday morning and, like silver and gold, it was sold lower until 2 p.m. in Zurich/8 a.m. in New York.  It began to head higher from there, with obvious resistance, until 1 p.m. EDT — and it was sold down into the 1:30 p.m. COMEX close from there.  Also like gold and silver, it rallied a bit until trading ended at 5:00 p.m. EDT.  Platinum was closed at $805 spot, down a dollar from Friday.

Palladium was led on a somewhat similar path as platinum, except its low came shortly before 11 a.m. in Zurich — and it began creep higher from there.  It really began to take flight at 9 a.m. in New York — and that rally ended/was capped at the 11 a.m. EDT Zurich close.  It traded sideways from there until 1 p.m.  Then, like platinum, was sold down into the COMEX close — and didn’t do much after that.  Palladium finished the Monday session in New York at $1,360 spot, up 24 bucks from Friday’s close — and about 13 dollars off its high of the day.

The dollar index closed very late on Friday afternoon in New York at 96.54 — and was marked up 11 basis points once trading commenced at 6:35 p.m. EDT in New York on Sunday evening.  It crept quietly and unsteadily higher until around 8:45 a.m. BST in London — and the chopped equally quietly sideways until its attempt to break above the 96.70 mark failed for the third time at 10:04 a.m. EDT in New York, which certainly coincided with the afternoon gold fix in London.  It fell down a bunch of basis points by 11:20 a.m. EDT — and the crawled quietly and unevenly sideways until trading ended at 5:30 p.m.  The dollar index finished the day at 96.76…up 22 basis points on the day.

Here’s the DXY chart from Bloomberg, as always.  Click to enlarge.

Here’s the 6-month U.S. dollar index chart, courtesy of the folks over at the stockcharts.com Internet site.  The delta between its close…96.71…and the close on the DXY chart above, was 5 basis points on Monday.  Click to enlarge as well.

The gold stocks gapped down a bit over two percent at the open — and their respective lows came around 9:45 a.m. in New York trading.  They recovered a bit from there in short order, then didn’t do much until shortly before 2 p.m. EDT — and then crept quietly higher into the 4:00 p.m. close of trading from there.  The HUI closed down 1.12 percent.

It was the same general price path for the silver equities, but after their 9:45 a.m. EDT bounce, they drifted quietly lower until around 1:20 p.m. in New York trading.  Then, either a huge buy order hit the tape, or there was some company-specific news, as the index jumped up two percent in an instant.  From there the shares crept quietly higher into the close.  Nick Laird’s Intraday Silver Sentiment/Silver 7 Index closed down only 0.65 percent.  Click to enlarge as well.

The CME Daily Delivery Report showed that 920 gold and 1 silver contract were posted for delivery within the COMEX-approved depositories on Wednesday.

In gold, the sole short/issuer was JPMorgan out of its ‘client’ account.  There were nine long/stoppers in total — and the three largest were HSBC USA, with 499 for its in-house/proprietary trading account…JPMorgan stopping 133 for its client account — and Advantage, picking up 96 for its client account as well.  In fourth place was International F.C. Stone with 75 contracts for its client account.

In silver, the short/issuer was R.J. O’Brien — and the long/stopper was JPMorgan.  Both transactions involved their respective client accounts.

The link to yesterday’s Issuers and Stoppers Report is here.

The Preliminary Report for the Monday trading session showed that gold open interest in June fell by 98 contracts, leaving 1,161 still around, minus the 920 mentioned a few paragraphs ago.  Friday’s Daily Delivery Report showed that only 2 gold contracts were actually posted for delivery today, so that means that 98-2=96 more gold contracts just vanished from the June delivery month. Silver o.i. in June declined by 1 contract, leaving just 3 left, minus the 1 contract mentioned a few paragraphs ago.  Friday’s Daily Delivery Report showed that 1 silver contract was actually posted for delivery today, so the change in open interest and the deliveries match.


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

And there was no sales report from the U.S. Mint, either.

There was some activity in gold over at the COMEX-approved depositories on the U.S. east coast on Friday — and a new one on me.  Brink’s, Inc reported receiving 32,215.302 troy ounces/1,002 kilobars [SGE kilobar weight]…which was precisely the number of kilobars that was shipped out of JPMorgan on Thursday.  The difference was that JPM shipped it out as 32,214.300 troy ounces/1,002 kilobars [U.K./U.S. kilobar weight].

Now there’s zero difference in these kilobars as far as weight is concerned, only the way the number is rounded off when its computed and then recorded.  Getting technical on you…1 kilogram equals 32.1507466 troy ounces.  The Brits and Americans rounded it off to 32.150 troy ounces when the metric system was first adopted in Europe way back when.  But when China started up the Shanghai Gold Exchange early in the 21st century, they rounded it off to three decimal place in the correct manner.  But still to this day, there are two accepted kilobar weights in precious metals…32.150 and 32.151 troy ounces.  What happened with this JPMorgan to Brink’s transfer was that Brink’s recorded it as SGE weight on receipt, even though it left JPMorgan’s vault bearing the U.K/U.S. weight.  This is the first acknowledgement outside of China, that the 32.151 troy ounces is now the accepted way of recording kilobars in troy ounce form.  I expect Brink’s, Inc. to do the same conversion going forward on any other kilobars they either receive or ship up.  And I suspect that it’s only a matter of time before everyone else follows suit.  But how much time, remains to be seen.

The only other activity in gold at the east coast depositories on Friday was a paper transfer of 56,519.700 troy ounces/1,578 kilobars [U.K./U.S. kilobar weight] from the Eligible category and into Registered over at the International Depository Services of Delaware.  The link to all of this is here.

There was decent activity in silver.  Only 1,001 troy ounces/1 good delivery bar was received — and that was dropped off at Delaware.  There was also 989,326 troy ounces shipped out.  There was one truckload…600,077 troy ounces…shipped out of CNT.  The remaining two ‘out’ activities were at Brink’s, Inc. and Delaware, as they parted with 377,243 and 12,004 troy ounces respectively.  There was also a paper transfer of some size…711,082 troy ounces…from the Registered category — and back into Eligible over at Brink’s, Inc.  Ted was of the opinion that JPMorgan now owns this — and since their own silver vault is full, they’ re holding it elsewhere — and the storage charges are cheaper in the Eligible category than they are in Registered.  There was also 10,596 troy ounces transferred from the Eligible category and into Registered over at Canada’s Scotiabank.  The link to all this activity is here.

There was no activity over at the COMEX-approved gold kilobar depositories in Hong Kong on their Friday, as they were closed for the Dragon Boat Festival.


Here are the usual two charts that Nick sends around on the weekend.  They show all the gold and silver bullion in all known depositories, mutual funds and ETFs, as of the close of business on Friday, June 7.  There was a big jump in gold, as 1,314,000 troy ounces was added during the reporting week, but the silver depositories showed a decline of 203,000 troy ounces during that period.  Click to enlarge for both.

I have a very decent number of stories for you today.


CRITICAL READS

How Hot Money Put America in Hot Water — Bill Bonner

Two newsworthy things happened on Friday.

As to the first, we were right after all. Mr. Trump isn’t going “Full Retard” in his trade war. At least, not with Mexico. His dramatic declaration of an escalating tariff… until the flow of illegal immigrants “STOPS”… must have been just another of the showman’s stunts.

Stir up a fake fight… make a fake “deal”… and declare a fake victory.

Over the weekend, Mr. Trump also tweeted – twice – that the deal included large food purchases:

MEXICO HAS AGREED TO IMMEDIATELY BEGIN BUYING LARGE QUANTITIES OF AGRICULTURAL PRODUCT FROM OUR GREAT PATRIOT FARMERS!

Neither Mexicans nor Americans could find any trace of this in the deal they negotiated. Nor is it obvious how Mexicans buying U.S. farm output would reduce illegal immigration… or why, if it made economic sense, they weren’t already buying food from the USA.

Countries don’t generally buy food anyway; companies buy food to sell at a profit. And farmers don’t grow corn as a patriotic act; they grow it to earn a living.

This interesting commentary from Bill, filed from Youghal in Ireland, was posted on the bonnerandpartners.com Internet site early on Monday morning EDT — and another link to it is here.


Mnuchin Says FX Tariff Push Isn’t Shift to Weak Dollar Policy

U.S. Treasury Secretary Steven Mnuchin says currency policy can be an important tool to address trade imbalances, and that a recent proposal to tariff countries that engage in competitive devaluation doesn’t represent a preference for a weak dollar.

The Trump administration last month signaled intent to turn the $5.1 trillion-a-day global currency market into the next battlefield of his trade war with a Commerce Department plan that would allow the U.S. to apply countervailing tariffs on nations seen to be actively driving down their currencies to boost exports.

Rebutting the view that such a regulation would signal the Trump administration’s shift toward a weak dollar policy, Mnuchin described it as “another important tool in the toolkit to make sure that we have fair and balanced trade.” He spoke in an interview Saturday in Fukuoka, Japan, where he’s meeting counterparts from the Group of 20 gathering of the world’s major economies.

Currency is now one of the issues we can look at in terms of subsidy,” Mnuchin said, noting that the administration acknowledges the difference between monetary and currency policy. “You can intervene and support your currency — that’s not manipulation.”

Then exactly what it is it, dear reader???  It sure sounds like manipulation to me.  This Bloomberg news item appeared on their Internet site at 3:04 a.m. PDT [Pacific Daylight Time] on Saturday — and I found this interesting article on the gata.org Internet site.  Another link to it is here.  In a very related story on the South China Morning Post on Saturday is this article headlined “China is letting value of yuan slide to offset trade war tariffs, U.S. Treasury Secretary Mnuchin says“.  I found that on the gata.org Internet site as well.


Kyle Bass: Capital Flight Risk from Hong Kong

Kyle Bass, founder of Hayman Capital Management, recently spoke with Real Vision about his belief that capital flight from Hong Kong is accelerating as the semi-autonomous island drifts further into China’s orbit and financial risks build.

Imagine that you’re a Hong Kong family that’s been there for generations and let’s say you’ve built wealth over time… In a freely convertible market you’d have to be foolish to leave it in Hong Kong Dollars, given the macro-economic instability of Hong Kong and what happens in a peg where, 36 years and there’s no volatility: no volatility begets no volatility until it doesn’t…

The moment that China starting… floating a proposal to extra-judicially grab someone off the streets in Hong Kong and take them to China without any court proceeding, that’s scaring not only the Hong Kong elite but the 85,000 Americans that live there… My friends that are very well off are leaving…

This 8:04 minute video clip, which is very much worth your while…if you have the interest, that is…was posted on thesoundingline.com Internet site on Saturday, June 8 — and it comes to us courtesy of Brad Robertson.  Another link to it is here.  A directly related Reuters story, filed from Hong Kong, is headlined “Hong Kong risks its future as global business hub” — and I thank Richard Saler for that one.  It’s worth reading as well.


This Sounds Like Desperation to Me — Andrei Martyanov

Of course, Donald Trump is a classical bully but this is:

a) Forestalling what Trump actually afraid of — and trying to look good in either case;
b) Does sound as a tantrum.

I am talking, of course, about this:

President Donald Trump warned Monday he will slap huge new tariffs on China if his counterpart Xi Jinping doesn’t show up for a planned face-to-face meeting later this month and insisted the Chinese economy will never overtake the United States. Trump delivered his hardline message ahead of the G20 summit on June 28-29 in Osaka, Japan, which could mark a turning point in the trade dispute between the world’s two biggest economies. Asked if a failure by Xi to come to the summit would lead to tariffs kicking in on a further $300 billion in Chinese imports, Trump told CNBC television: “Yes it would.

I, of course, do not want to delve into this “will never overtake the United States“, since it already overtook it, not to mention gross, if not grotesque, overvaluation of U.S. economy, but what do you expect? This is Donald Trump after all and the trade war against China, as is expected, doesn’t go as planned.

This brief, but very worthwhile commentary from Andrei was posted on the smoothiex12.blogspot.com Internet site on Monday sometime — and another link to it is here.  I thank Larry Galearis for sending it our way.


The Great Bilderberg Secret Of 2019 — Pepe Escobar

Unlike Deep Purple’s legendary ‘Smoke on the Water’ – “We all came out to Montreux, on the Lake Geneva shoreline”, the 67th Bilderberg group meetings produced no fire and no smoke at the luxurious Fairmont Le Montreux Palace Hotel.

The 130 elite guests had a jolly good – and theoretically quiet – time at the self-billed “informal discussion forum concerning major issues”. As usual, at least two-thirds were European decision-makers, with the rest coming from North America.

The fact that a few major players in this Atlanticist Valhalla are closely associated with or directly interfering with the Bank for International Settlements (BIS) in Basel – the central bank of central banks – is of course just a minor detail.

And that brings us to Secretary of State Mike Pompeo’s long, non-scheduled stop in Switzerland, on the Bilderberg’s fringes, just because he’s a “big cheese and chocolate fan”, in his own words.

Yet any well-informed cuckoo clock would register he badly needed to assuage the fears of the trans-Atlantic elites, apart from his behind-closed-doors meetings with the Swiss, who are representing Iran in communications with Washington. After weeks of ominous threats to Iran, the U.S. said “no preconditions” would be set on talks with Tehran, and this was issued from Swiss soil.

Henry Kissinger was a 2019 Bilderberg participant. Rumors that he spent all his time breathlessly plugging his “reverse Nixon” – seduce Russia to contain China – may be vastly overstated.

This very interesting commentary from Pepe put in an appearance on thesaker.is Internet site last Wednesday.  I had several readers send it to me — and why I didn’t post it back then, escapes me.  But finally Tolling Jennings sweet-talked me into it yesterday.  Another link to it is here.


Ensuring the Worst Possible Leadership — Jeff Thomas

Ancient Greece is credited as raising the societal structure to new heights. Whenever this period is referred to, philosophers and historians are quick to mention that the ancient Greeks gave the world Democracy.

Yet, Socrates, who is regarded as having been a rather thoughtful fellow, eyed democracy with deep suspicion. He was right to do so.

Socrates argued to Adeimantus that voting in an election is a skill – one that must be developed. It was not an inherent intuition that all people possessed from birth.

As such, he felt that only those who had taken the time to hone this particular skill should be allowed to vote.

Perhaps coincidentally, he was put on trial in 399 BC for corrupting the youth of Athens with his philosophies. A jury of five hundred Athenians decided by a narrow margin that he was guilty. He was put to death by the hoi polloi of his day for having and disseminating ideas.

And so, the politicians of the day rid themselves of a troublemaker – an individual who had the cheek to question the leaders of the day and how they came to be chosen.

This worthwhile commentary from Jeff showed up on the internationalman.com Internet site on Monday morning sometime — and another link to it is here.


Venezuela’s gold fever fuels gangs and insecurity: ‘There will be anarchy

Puerto Ordaz was once Venezuela’s industrial hub, a modernist dream of broad boulevards and ranks of factories and gateway to a belt of rich oilfields that funded government largesse for decades.

As the economy has crumbled though, the modern city of steel and aluminium has been swallowed by its past, transformed into little more than an outpost of the gold mines a few hours’ drive away in the fringes of the Amazon.

There, in swampy, malaria-ridden pits controlled by criminal gangs, men labour away much as they would have done centuries ago. The lumps of yellow metal they extract through backbreaking work now power the city; gold has become so pervasive that medieval-style barter is replacing hard currency across the city.

Gold also increasingly pays the bills for the national government in distant Caracas. With oil revenues dwindling and U.S. sanctions biting, the president, Nicolás Maduro, has been relying on wealth from the mines to keep the government afloat during a months-long standoff with the opposition leader, Juan Guaidó.

So the government has allowed the illegal industry and the armed groups that run them to flourish, spawning an epidemic of violence, disease and environmental devastation, and drawing in much of the remaining population of Puerto Ordaz.

This interesting photo essay showed up on theguardian.com Internet site at 12:00 noon BST on Saturday afternoon, which was 7:00 a.m. on the U.S. east coast — EDT plus 5 hours.  I thank Patricia Caulfield for pointing it out — and another link to it is here.


The African Nation Built on Gold Loses Its Crown to a Rival

South Africa’s struggling gold industry has suffered yet another humiliation, losing its status as continental leader to Ghana.

The country that led global gold production for a century and extracted about half the bullion mined to date is now Africa’s second-largest gold producer. Output is shrinking as operators capitulate to stubbornly high costs, regular strikes and the geological challenges of tapping the world’s deepest mines.

Meanwhile Ghana, a country whose gold-mining industry dates back to the 19th century, is benefiting from lower-cost mines, friendlier policies and new development projects.  Click to enlarge.

South African industry stalwarts AngloGold Ashanti Ltd. and Gold Fields Ltd. are shifting their focus to other countries — including Ghana — where deposits are cheaper and easier to mine. The largest remaining gold miner in South Africa, Sibanye Gold Ltd., is cutting thousands of jobs and diversifying into platinum-group metals as it struggles to contain costs.

The difficulties facing South African gold mines mean output is contracting even though it’s got the world’s second-largest reserves of the metal, according to estimates from the U.S. Geological Survey.

This Bloomberg article appeared on their website at 3:00 a.m. PDT on Sunday morning — and was updated about twenty-four hours later.  I extracted it from a GATA dispatch — and another link to it is here.


China Buys Most Gold in Over 3 Years Amid “Determined Diversification” From Dollar

China continued its renewed (public) gold-buying spree in May adding almost 16 tons of the precious metal to its reserve – the biggest monthly increase since January 2016.

It’s a diversification away from the U.S. dollar, particularly given the trade tensions and the potential technology cold war that’s evolving,” said Bart Melek, global head of commodity strategy at TD Securities.

We have to remember that gold is nobody’s liability.”

This is the sixth straight month of buying since China’s publicly reported pause.  Click to enlarge.

While this figure is hotly contested as being an underestimate of Chinese State’s actual gold holdings, its the only figure available, and whatever the real number, its notable that the Chinese government has revived the trend of announcing physical gold purchases each and every month.

As Bloomberg reports, the rise reflects the government’s “determined diversification” away from dollar assets, Argonaut Securities (Asia) Ltd. analyst Helen Lau said, adding that retail demand has also picked up. At this rate of accumulation, China could buy 150 tons in 2019, according to Lau.

Finally, as BullionStar.com‘s Ronan Many recently noted, with China in one of the driving seats of the world’s physical gold market, along with India and Russia in the other, it is opportune then that the London Bullion market Association (LBMA) has chosen Shenzhen in China as the location for its annual conference this coming October where they should have plenty to talk about as China’s gold market continues to fire on all cylinders. It also raises some questions such as why the international gold price continues to be established by the paper gold markets of London and the U.S. COMEX. Maybe China prefers it that way.

This is just more gold that China has had on its books for years — and is now putting it into its official reserves in dribs and drabs…as I reported this time last month.  This gold-related news item was posted on the Zero Hedge website at 11:15 a.m. EDT on Monday morning — and I thank Richard Saler for sending it along.  Another link to it is here.


Gold Fever? Statistics Reveal India Imported Bullion like Crazy in May

India, the world’s second-biggest consumer of gold, bought almost 50% more gold in May than it did a year earlier, Scrap Register reported Friday. According to the report, India imported 116 tonnes of gold, compared to 78 tonnes a year earlier. In value terms, India’s gold imports rose to $4.78 billion in May 2019 from $3.48 billion a year ago, according to an anonymous government official.

According to Scrap Register report, the heightened imports were dictated by local festivities that led to a surge in retail gold demand. Retail gold prices increased by 1,000 rupees ($14,41) per 10 grams, hitting 32,834 rupees level ($473) per 10 grams, according to Reuters report.

The market is currently in recoil, with retail demand very low due to high prices and retail sellers making discounts, a Reuters report says. Throughout the week, dealers offered 50 cent discounts per ounce compared to official prices, compared to a 50 cent premium last week.

Heightened prices on gold motivated customers in India and China — the world’s biggest consumer of gold — to sell their gold, flooding the market with scrap, according to Reuters.

I’m still waiting for Nick to update India’s gold import numbers for April, which I understand was a big import month as well.  This brief news item put in an appearance on the sputniknews.com Internet site on Saturday — and I found it on the Sharps Pixley website.  Another link to it is here.


An Ancient Roman Gold Coin Found in a Field Just Sold for $700,000 at Auction, Making One Very Happy Metal Detectorist

A 30-year-old British man with a metal detector came across a small 24-carat gold coin the size of a penny this past March. Yesterday, it sold at auction for $700,000…five times its estimated value.

The 1,700-year-old coin, an ancient Roman aureus, depicts the face of Allectus, a finance minister in Roman Britain who usurped the crown by murdering the sitting emperor, Carausius. It was estimated to sell for between $90,000 and $127,000 at the London-based coin, medal, and jewelry auction house Dix Noonan Webb. But warring bidders skyrocketed the price, with an unidentified collector ultimately placing the final bid by telephone.

This is the most expensive coin that we have ever sold at Dix Noonan Webb,” said Christopher Webb, director of the house’s coin department, in a statement. “As well as being one of the world’s most expensive Roman coins, it is the most money ever paid for a coin of Allectus and it is now the most valuable Roman coin minted in Britain to have been sold at auction.”

This story, along with a couple of neat photos, was posted on the artnet.com Internet site last Friday — and I thank Jim Gullo for bringing it to our attention.  Another link to it is here.


The PHOTOS and the FUNNIES

After our short journey 3 miles/ 5 kilometers north of Lillooet to the Bridge River, we drove back into town — and I took these photos along the foot/bike path in the town itself.  I was careful to get as little human habitation in the shots as possible, even though the main street through the downtown was right behind us in the first two.  First shot overlooks the Fraser River to the south east — and the only bridge into the town off of B.C. Highway 99 and Highway 12.  Part of the industrial area is in the center of the shot — and part of the vineyards of the Fort Berens winery is visible on the far left.  Their Meritage of 2014 vintage was excellent, but has been completely sold out now.  The second photo is from the exact same spot, but looking down the river to the north east.  The CNR tracks are in the foreground — and B.C. Highway 99 is the cut in the bank on the far side.  The third shot is from a lookout point on B.C. Highway 99 as we headed north out of town, looking down on the Bridge River from on high.  The photos of that river — and the bridge, graced Saturday’s column.  The Fraser River is just out of frame at the bottom of the picture.  Click to enlarge.


The WRAP

Despite the engineered price declined in gold and silver yesterday, I’m still of the opinion that this sell-off is of a temporary nature — and I was pleased the way that the precious metal equities performed…all things considered.

But one shouldn’t underestimate the treachery of JPMorgan et al — and I suppose something worse can be envisioned, but somehow I don’t think that’s in the cards.  But with the next FOMC meeting a week away…who knows.  As always, we’ll just have to wait some more.

But I was somewhat surprised that silver volume was as low as it was, considering that ‘da boyz’ blasted the price back below both its 50 and 200-day moving averages.

Palladium closed above its 50-day moving average for the second day in a row.  Copper and WTIC didn’t do much — and are still miles below any moving average that matters.  I note here in town yesterday evening that gas prices at the pump were down 12 cents a liter over the weekend.

Here are the 6-month charts for the Big 6 commodities.  Click to enlarge.

And as I type this paragraph, the London open is a minute or two away — and I see that the gold price did practically nothing in Far East trading, but took a dip once the 2:15 p.m. China Standard Time afternoon gold fix was done in Shanghai on their Tuesday afternoon. At the moment, gold is down $2.30 the ounce. Ditto for silver — and it’s down 3 cents. Platinum was up five bucks by 9 a.m. CST, but that’s all gone now, plus a bit more, as platinum is currently down 2 bucks.  Palladium was up eight dollars by 9 a.m. CST — and all of that is gone as well. It’s also down 2 dollars as Zurich opens.

Net HFT gold volume is pretty light at a tiny bit over 33,000 contracts — and there’s only 654 contracts worth of roll-over/switch volume on top of that. Net HFT silver volume is already pretty decent at about 12,500 contracts — and there’s only 279 contracts worth of roll-over/switch volume out of July and into future months.

The dollar index opened down about 2 basis points once trading commenced at 7:45 p.m. EDT in New York on Monday evening, which was 7:45 a.m. CST on their Tuesday morning. It was up a small handful of basis points by 10:10 a.m. CST, but has slid a bit since — and is up 1 basis point as of 7:45 a.m. BST in London/8:45 a.m. CEST in Zurich. Not much is happening in the currencies at the moment.


Today, at the close of COMEX trading, is the cut-off for Friday’s Commitment of Traders Report — and I’ll have something to say about what might be in it in tomorrow’s column, once I’ve had a look at the fifth doji for the reporting week.


And as I type this paragraph, the London open is less than ten minutes away — and I note that gold continues to get sold lower — and is now down $5.30 the ounce as the first hour of trading draws to a close over there. Silver hit its low right at the London open, then made it back to unchanged briefly, but has been sold lower anew –and is now down 3 cents. Like gold, both platinum and palladium hit their current low ticks just minutes after the Zurich open. Platinum is down a dollar, but palladium is now up 4 bucks as the first hour of Zurich trading draws to a close.

Gross gold volume has jumped up — and is coming up on 54,000 contracts. Minus what little roll-over/switch volume there is, net HFT gold volume is 52,000 contracts. Net HFT silver volume is up quite a bit as well, at a bit over 16,400 contracts — and there’s still only 475 contracts worth of roll-over/switch volume out of July and into future months.

The dollar index began to head lower the moment that London opened, hitting its current low at 8:25 a.m. BST. It’s now off that low by a bit — and is down 5 basis points as 8:45 a.m. in London/9:45 a.m. in Zurich.

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

Ed