03 April 2020 — Friday
YESTERDAY in GOLD, SILVER, PLATINUM and PALLADIUM
After ticking a bit higher an hour or so after trading began at 6:00 p.m. EDT in New York on Wednesday evening, the gold price was sold quietly lower until shortly before 11 a.m. China Standard Time on their Thursday morning. It didn’t do much from that point until about two hours later when it began head higher at an ever-increasing rate, but it ran into ‘something’ about 8:15 a.m. in London as it broke above $1,600 spot. It was then sold lower until shortly after 10 a.m. BST — and it began to head higher from there, but with obvious interference. The rally was capped at 12:20 a.m. in New York — and sold sharply lower shortly after that. The tiny gain that followed was all taken away by the 5:00 p.m. close.
The low and high ticks in gold were reported as $1,595.20 and $1,642.00 in the June contract.
Gold was closed on Thursday afternoon in New York at $1,610.20 spot, up $16.80 from Wednesday…around 13 dollars off its Kitco-recorded high tick of the day. Net volume was exceedingly light once again at a bit under 154,000 contracts — and there was a hair under 15,000 contracts worth of roll-over/switch volume on top of that.
Silver traded in a similar manner up until it was capped around 8:15 a.m. in London trading — and from there it drifted lower until, like gold, it began to head sharply higher just before 1 p.m. BST/8 a.m. EDT. Its rally was capped at 8:30 a.m. in New York — and was then forced to chop very unevenly sideways until the market closed at 5:00 p.m.
The low and high ticks in silver were reported by the CME Group as $13.99 and $14.72 in the May contract.
Silver was closed at $14.48 spot, up 62.5 cents from its close on Wednesday. Net volume was very light as well at a hair under 48,000 contracts — and there was about 9,300 contracts worth of roll-over/switch volume out of May and into future months.
Platinum was sold down to its low tick of the day by around 9 a.m. in Shanghai — and then headed unevenly higher until that rally was capped and turned lower a few minutes after the 9 a.m. CEST Zurich open…at the same time that gold and silver were turned lower. It traded very unevenly lower from that juncture until the 10 a.m. EDT afternoon gold fix in London. It managed to rally a bit from that point before creeping higher into the 5:00 p.m. EDT close. Platinum finished the Thursday session in New York at $732 spot, up 11 bucks from its close on Wednesday.
After getting sold down pretty hard at the New York open on Wednesday evening, the palladium price struggled higher until around 8:15 a.m. China Standard Time on their Thursday morning. It traded somewhat erratically sideways until around 8:30 a.m. in New York — and was hammered into the dirt starting at that point. It was pounded lower by about $260 bucks until it touched $2,000 spot — and then rebounded sharply. By the end of the day it was down ‘only’ 39 dollars at $2,141 spot.
Based on the spot closing prices of gold and silver yesterday, the current gold/silver ratio works out to 111 to 1…down a bit from Wednesday.
The dollar index closed very late on Wednesday afternoon in New York at 99.67 — and opened down about fifteen basis points once trading commenced around 7:45 p.m. EDT on Wednesday evening, which was 7:45 a.m. China Standard Time on their Thursday morning. After a long and very quiet up/down move that ended at, or minutes before the 2:15 p.m. afternoon gold fix in Shanghai, the 99.34 low tick of the day was set. A ‘rally’ commenced at that juncture that topped out at the 100.41 mark around 2:22 p.m. in New York. It slid a bit until 4:22 p.m. — and then traded sideways until the market closed at 5:30 p.m. EDT.
The index was closed at 100.18…up 41 basis points from its close on Wednesday.
Once again there was no correlation between precious metal prices and what was happening in the currency market.
Here’s the DXY chart for Thursday, thanks to Bloomberg as always. Click to enlarge.
And here’s the 6-month U.S. dollar index chart — and this one comes courtesy of the good folks over at the stockcharts.com Internet site. The delta between its close…100.27…and the close on the DXY Chart above, was 9 basis points higher than the spot month on Thursday. Click to enlarge as well.
The gold stocks took off higher the moment that trading began at 9:30 a.m. EDT on Thursday morning — and of course topped out when the gold price was capped and turned lower around 12:20 a.m. in New York trading. From there they wandered unevenly lower — and the day traders took their pound of flesh off the table minutes before the 4:00 p.m. close. The HUI closed higher by 4.87 percent. [The HUI was up about 7 percent at its high of the day.]
In all respects that mattered, the silver equities followed a mostly similar pattern as their golden cousins. Nick’s Intraday Silver Sentiment/Silver 7 Index chart was a big mess yesterday, so I’ve decided not to post it. But I’ve computed the change manually — and his Index closed higher by 4.58 percent.
Here’s Nick’s 1-year Silver Sentiment/Silver 7 Index chart updated with Thursday’s doji. This chart comes from a different data stream than the one used for the Intraday Silver 7 Index. Click to enlarge.
The star of the day on Thursday was Wednesday’s dog…Coeur Mining…up 18.56 percent. It gained back everything it lost the previous day. The dog on Thursday was Peñoles, closing down 3.17 percent.
After this Reuters story, headlined “Mexican miners to keep working essential projects during coronavirus” appeared in my in-box yesterday, I fired off an e-mail to Todd Anthony the head I.R. guy at First Majestic Silver — and asked the following question…”How does this affect your operations, since they’re all in Mexico?“. His detailed reply is as follows:
“Hi Ed — Earlier today a number of industry groups were set to meet with the Mexican Cabinet and President AMLO on making the case that mining, especially silver mining, is an essential and critical industry. The group will be asking for a modification in the decree issued by the government to allow mining, or specific mines in isolated regions / communities like the Tayoltita and Banamichi (San Dimas and the Santa Elena).
In the meantime, the Company continues to run at full production with reduced staffing due to the “at-risk” or vulnerable (>60 years old, pre-existing medical conditions, obesity, etc…) being removed from the mines and businesses per AMLO’s original decree.
A number of other precautions have also been put in place, like full daily screening of all workers, sterilization, education, social distancing measures and an extended work schedule to protect the workforce, our communities, and to continue safe operations.
At this time other major large miners in Mexico have not suspended operations and are also making their case to the Federal Governments, supported by the State Governments, that mining should be considered an essential industry as it is in Canada and the U.S.
In the meantime, we are also developing care and maintenance programs at each of our operations in the event the Mexican Government ultimately determines mining is not essential and must suspend. — Todd”
In an immediate follow-up e-mail Todd said that…”We will be announcing our decision shortly. Will know more tomorrow morning.”
The CME Daily Delivery Report showed that 2,580 gold and 11 silver contracts were posted for delivery within the COMEX-approved depositories on Monday.
In gold, there were eight short/issuers in total — and by far the largest was JPMorgan with 1,698 contracts…1,271 from its client account, plus another 427 contracts from its own account. In distant second and third place were Goldman Sachs and International F.C. Stone, with 456 and 366 contracts…the former from their in-house/proprietary trading account — and the latter from their client account. There were fifteen long/stoppers — and JPMorgan was the largest, picking up 1,083 contracts for its client account. In second place was HSBC USA with 638 for its own account, plus another 3 for its client account. In third and fourth spot were Australia’s Macquarie Futures and Citigroup with 231 and 199 contracts — and all for their own accounts. In fifth place was Dutch bank ABN Amro, picking up 192 contracts for its client account.
In silver, the two short/issuers were Morgan Stanley and Advantage, with 7 and 4 contracts respectively — and the lone long/stopper was ADM, picking up all 11. All contracts, both issued and stopped, involved their respective client accounts.
The link to yesterday’s Issuers and Stoppers Report is here.
The CME Preliminary Report for the Thursday trading session showed that gold open interest in April fell by 610 contracts, leaving 4,087 still open, minus the 2,580 contracts mentioned a few paragraphs ago. Wednesday’s Daily Delivery Report showed that 1,433 gold contracts were actually posted for delivery today, so that means that 1,433-610=823 more gold contracts just got added to the April delivery month. That a lot of gold! Silver o.i. in April actually rose by 5 contracts, leaving 61 still around, minus the 11 mentioned a few paragraphs ago. Wednesday’s Daily Delivery Report showed that 18 silver contracts were actually posted for delivery today, so that means that 5+18=23 more silver contracts were added to April.
In the last two days, there have been 1,307 more gold contracts added to the April delivery month…a bit over 4 tonnes…with lots more April still to go.
There was another very decent deposit into GLD on Thursday, as an authorized participant added 103,471 troy ounces. But over at SLV, there was 541,883 troy ounces of silver withdrawn.
In other gold and silver depositories on Planet Earth on Thursday, net of COMEX, GLD & SLV activity, there was a net 55,949 troy ounces of gold added, plus 291,742 troy ounces of silver was added as well.
[Note: That big 3.16 million ounce increase in iShares CGL.TO/SGLN ETF that was reported in this space yesterday has turned out to be correct. I have seen the correspondence, plus the raw data that Nick got back from [Ticker Symbol: SGLN] them saying that their website hadn’t been updating the data since December 2018. It has now been fixed. That’s another 100 tonnes of gold that’s off the streets that we didn’t know about until yesterday. – Ed]
There was a small sales report from the U.S. Mint to start off April. They reported selling 24,500 troy ounces of gold eagles. This sales report, plus the one on Wednesday, were a bit of a surprise considering the fact that mint is supposed to be closed.
There was more big activity in gold over at the COMEX-approved depositories on the U.S. east coast on Wednesday. There was 547,853 troy ounces/17,040 kilobars [SGE kilobar weight] reported received — and all of that went into Brink’s, Inc. Nothing was shipped out. There was also a big paper transfer at Brink’s, Inc. as well, as they moved 361,312.900 troy ounces/11,238 kilobars [SGE kilobar weight] from the Eligible category and into Registered. I would suspect that this transfer was from that big deposit that was made on the same day — and it’s out for delivery now. The link to that activity, plus a bit more, is here.
There was some activity in silver. One truckload…600,971 troy ounces…was dropped off at Canada’s Scotiabank — and that’s all the ‘in’ activity there was. There was 292,675 troy ounces shipped out. Of that amount, there was 250,978 troy ounces that departed Scotiabank — and the remaining 41,697 troy ounces was shipped out of CNT. The link to all this is here.
Once again there was very decent activity over at the COMEX-approved gold kilobar depositories in Hong Kong on their Wednesday. They reported receiving 1,700 of them — and shipped out 2,500. All of this activity was at Brink’s, Inc. — and the link to that, in troy ounces, is here.
Here are two charts that I took off Nick Laird’s website just now. They are the 10-year charts showing gold and silver bullion coin sales from the U.S. Mint, updated with March’s data. During that month the mint sold 189,500 troy ounces of gold eagle and gold buffalo bullion coins — and in silver, they sold 5.48 million troy ounces of silver eagles. Click to enlarge for both.
I have an average number of stories, articles and videos for you today.
The number of Americans applying for unemployment benefits soared to a record 6.65 million last week, a level unimaginable just a month ago. Click to enlarge.
As states shut down commerce to prevent the deadly coronavirus from spreading, the weekly claims data have been among the first detailed figures to show the devastating economic hit, highlighting the extent to which U.S. businesses and workers are reeling from the global health crisis.
The figures also may add to pressure on the federal government to ensure that aid payments and loans under the $2 trillion stimulus package flow quickly to people and businesses.
“I never thought I’d see such a print in my lifetime as economist,” said Thomas Costerg at Pictet Wealth Management, who had the highest forecast in the Bloomberg survey, at 6.5 million. Claims are likely to stay elevated as more states announce stay-at-home orders, and it would be “not unthinkable” to see a 20% unemployment rate, more than double the high that followed the last recession, he said.
The data come a day before the March jobs report, which is expected to show the first monthly decline in payrolls since 2010. Nonetheless, those figures will show only the start of the labor-market damage, as the government’s survey period covered early March, prior to the biggest rounds of layoffs and closures.
This Bloomberg story showed up on their Internet site at 5:32 a.m. PDT on Thursday morning — and was updated about four and a half hours later. I thank Swedish reader Patrik Ekdahl for pointing it out — and another link to it is here. Gregory Mannarino‘s post market close rant for Thursday is linked here — and comes courtesy of Brad Robertson.
As we predicted in a a report we published just days ago, the U.S. auto industry is on the verge of total collapse. Numbers out of major automakers on Wednesday this week confirmed a worst case scenario: that the global pandemic is doing severe (and potentially irreversible) damage to an industry that was in ugly shape even before the coronavirus outbreak began.
GM saw sales plunge 7.1% and Fiat saw sales drop 10% for the first quarter of 2020, both larger than expected declines, according to Bloomberg. It’s also worth noting that the industry didn’t quite grind to a halt until March, and so Q2 numbers could wind up being far worse.
Toyota’s sales fell 37% in March, with even its best-selling RAV4 dropping 25%. Nissan had the weakest quarterly results, posting a 30% drop in sales for the first three months of the year. More than 25% of Nissan’s dealers are being negatively affected by state ordinances limiting sales.
Names like Volkswagen, Honda, Hyundai and Mazda all saw drops of over 40% for March. If automakers that report quarterly continue to follow this trend, Q2 numbers may be a sight to behold.
The industry’s annualized selling rate has slowed to just 11.4 million, marking its lowest point since April 2010.
And today’s sales numbers should not come as a surprise to Zero Hedge readers, as we noted days prior that the entire U.S. auto industry had basically entered full collapse.
This story was posted on the ZH website at 12:00 p.m. on Thursday afternoon — and I thank Brad Robertson for sending it our way. Another link to it is here. A related ZH story is headlined “U.S. Box Office Sales Collapse to Just $5,179; Was $204 Million During Same Period Last Year”
- Ratings agency Fitch has downgraded 11 consumer and retail companies because of the financial disruption caused by the COVID-19 pandemic.
- On Wednesday alone, Fitch downgraded credit ratings for nine retailers, according to emailed client notes.
- Among them were J.C. Penney, Macy’s, Nordstrom, Kohl’s, Dillard’s, Capri, Tapestry, Levi’s and Signet.
As COVID-19 rips through the country, retailers have shuttered stores, furloughed employees, dipped into their credit lines and made other painful decisions about what costs to pay.
Many of the department stores downgraded Thursday by Fitch had struggled to maintain or grow sales even in a booming economy. Now they are trying to manage their operations through an unprecedented market shock.
As retailers manage the closures, the key to survival is cash. Cowen analysts found that department stores, as a group, have enough cash to stay afloat for five to eight months. Some, like Macy’s, have even less.
As Sarah Wyeth, sector lead for S&P Global’s retail and restaurant coverage, told Retail Dive earlier this month, “As the secular headwinds retail is facing accelerate, this could be the nail in the coffin of some of these brick-and-mortar retailers.”
This Zero Hedge news item put in an appearance on their Internet site at 3:45 p.m. EDT on Thursday afternoon — and another link to it is here.
We just wrapped up the worst first quarter in the history of the U.S. stock market. Think about that in context. Even during the dark days of the Great Depression, there has never been a worse start to a year for the U.S. stock market than 2020.
Nevertheless, there are still a lot of people out there who think this is going to be a short bear market. As Peter Schiff put it in his podcast, that’s because they’re still fixated on the pin.
They’re still looking at the fact that ‘Oh, this is man-made.’ I keep hearing people saying, ‘We did this to ourselves. This is not a real bear market. This is not a real recession.’ You know, because we decided to shut down the economy. So, all we have to do is decide to start it back up again and everything is going to be fine.”
Further driving this myth is the notion that as long as the Federal Reserve can print up enough money between now and then to bail everybody out, everything will be OK.
This is all wishful thinking. It’s all part of the delusion. It’s not going to be fine. Because it wasn’t fine before the crisis. We didn’t have a solid economy. We had a bubble. That’s the problem. And the bubble has been pricked. There is no way to go back to where we were. It’s like trying to unscramble an egg. It can’t be done.
The markets and the economy are scrambled. You can’t put it back the way it was.
In an interview on the Tom Woods show, Doug Casey argued that what we’re seeing today is really an extension of the 2008 financial crisis.
The financial crisis that started in 2008, view it as entering the leading edge of a gigantic hurricane. And we went through that leading edge and you’ll recall, it was quite scary and unpleasant in 2008 and 9 and 10. And we’ve been in the eye of the storm since then. Big hurricane, big eye. But now we’re entering into the trailing edge of the storm, and it’s going to be much longer-lasting and much worse and much different than what we had back in 2008, 9 and 10.
Casey went on to make the exact same point as Peter.
I’m sorry that this is all going to be blamed on the current coronavirus hysteria, however, because that’s just the accidental pin that broke the bubble.
This commentary was posted on the Zero Hedge website at 4:45 p.m. EDT on Thursday afternoon — and another link to it is here.
“We’re going to need a bigger chart.”
That’s all one can say when seeing what happened to the Fed’s balance sheet in the past week.
According to the Fed’s latest weekly H.4.1 (i.e., balance sheet) update, as of April 1 the Fed’s balance sheet hit a record $5.811 trillion, an increase of $557 billion in just one week. And when one adds the $88.5BN in TSY and MBS securities bought by the Fed today, we can calculate that as of close of business Thursday, the Fed’s balance sheet was an unprecedented $5.91 trillion, an increase of $1.6 trillion since the start of the Fed’s unprecedented bailout of everything on March 13 when the Fed officially restarted QE. And since we know that tomorrow the Fed will buy another $90 billion, we can conclude that as of Friday’s close, the Fed’s balance sheet will be a nice, round $6 trillion. Click to enlarge.
Finally, here is what the Fed’s balance sheet looks like over a longer time frame: it shows that in just the past 3 weeks, the Fed’s balance sheet has increased by a ridiculous $1.6 trillion – the same amount as all of QE3 did over 15 months – and equivalent to an insane 7.5% of U.S. GDP.
One more insane statistic: the Fed’s balance sheet was $3.8 trillion in August 2019 when the shrinkage in reserves supposedly triggered the repo crisis. Fast forward, 6 months, when the Fed’s balance sheet is now 60% higher.
Last Saturday we said that according to former N.Y. Fed staffer, the Fed’s balance sheet will double to $9 trillion by the end of the year.
Just three weeks after the Fed restarted its “all in” gamble, the balance sheet is already one third of the way there.
This Zero Hedge story appeared on their website at 5:33 p.m. on Thursday afternoon EDT — and I thank Richard Saler for sending it along. Another link to it is here.
I was sitting in the exam room and the doctor walked in. Knowing I write this blog, he said, “Finally someone I can talk to. What the heck is going on?”
With our current economic situation, the market tanking and the Coronavirus monopolizing the amped up media, a lot of concerned subscribers are asking that question.
When you combine financial and health concerns, with the never-ending political hysteria and out of control Federal Reserve, you hope emotional, knee-jerk reactions don’t cause bigger problems. We have never seen such a mess in our lifetime; we are in uncharted waters.
Subscriber Rick G. had some 4% bonds called in. “What should I do with the money? The bond market is too scary, sure don’t want to touch the stock market at the moment and 10-year CDs won’t keep up with inflation.”
The working class cannot afford expensive knee-jerk reactions in a crisis; the cost of a mistake can be much too high.
I’m lucky to have good friend Chuck Butler in times like this. His inbox is also pretty full.
This interesting Q&A with Chuck was posted on Dennis’s website on Thursday morning sometime — and another link to it is here.
Norway’s sovereign wealth fund, the world’s biggest, lost a record 1.17 trillion kroner ($113 billion) in the first quarter after the economic shock caused by the coronavirus pandemic triggered a sell-off in global stock markets.
The loss comes at an historic moment for the fund, as it may soon need to liquidate assets for the first time to cover Norway’s emergency spending measures. During the first quarter, government withdrawals reached 67 billion kroner. That number looks set to grow dramatically in April.
The fund had a loss of 14.6% in the first quarter. Equities rebounded in the last days of March, when the investor was valued at 10 trillion kroner ($972 billion). As a result, the return wasn’t quite as bad as feared just a week ago. Its stock portfolio fell 21.1%, while fixed income investments rose 1.3%.
The quarterly slump was deeper than the 10.3% the fund lost in the last three months of 2008, at the height of the financial crisis. It follows the record annual return for last year that the fund presented just weeks ago, showing the speed at which the pandemic has upended markets.
This Bloomberg news item put in an appearance on their website at 3:51 a.m. PDT on Thursday morning — and was updated an hour and change later. It’s the second contribution of the day from Patrik Ekdahl — and another link to it is here.
Jeffrey Gundlach has a warning for investors piling into gold-backed ETFs: Don’t think you’ll get the physical metal back.
State Street Corp.’s $50 billion SPDR Gold Shares ETF, ticker GLD, attracted $2.9 billion of inflows last week, its biggest haul since 2009, as haven demand amid escalating coronavirus fears boosted the metal. Meanwhile, assets in gold ETFs climbed to a record on Tuesday, according to data compiled by Bloomberg.
The demand for such ETFs is flashing a warning sign for DoubleLine Capital’s chief investment officer, who cautioned against the products during a webcast Tuesday. While ETFs such as GLD are backed by physical gold, the process for an individual investor to acquire the actual bullion isn’t as simple as selling shares of the ETF. “Paper gold” ETFs are little more than speculative vehicles, Gundlach said, and buyers should be aware that holding shares doesn’t amount to having gold bars.
“What happens if physical gold is in short supply and everyone wants to take delivery of their paper gold?” Gundlach said. “They can’t squeeze blood out of a stone.”
The process of swapping GLD shares for physical gold sits “outside of normal dealings,” according to State Street Global Advisors head of ETF research Matthew Bartolini. Bank of New York Mellon, the fund’s trustee, doesn’t interact with the public but only with middlemen known as authorized participants — traders who channel assets in and out of the fund. An investor would have to work with one of GLD’s APs to acquire gold, he said.
“An individual investor wishing to exchange the Trust’s shares for physical gold would have to come to the appropriate arrangements with his or her broker and an authorized participant to receive the gold bars,” Bartolini wrote in an e-mail.
I don’t understand why this is such a big deal, as GLD, like SLV, is mostly considered as a trading vehicle only. And if someone has issues with these two ETFs — and wants to own physical gold in quantity, there are other avenues one can use to purchase it. This Bloomberg article was posted on their Internet site at 10:13 a.m. PDT [Pacific Daylight Time] on Wednesday morning — and I found it on the gata.org Internet site. Another link to it is here.
Mexico’s mining sector, one of the country’s major industries, will be able to continue operating projects deemed to be essential during the public health crisis caused by coronavirus, two government officials told Reuters.
President Andres Manuel Lopez Obrador’s administration earlier this week declared a health emergency due to the viral outbreak which requires that non-essential work be shut down or minimized.
But the mining sector, responsible for about 4% of Mexico’s gross domestic product, will be able to continue with some projects in an effort to avoid the “paralization” of future operations as well as to promote mine safety, the sources said.
I linked this earlier in my column. The above three paragraphs are all there is to this very brief Reuters article that showed up on their Internet site at 12:18 p.m. on Wednesday — and I found it in a GATA dispatch. Another link to the hard copy is here.
The PHOTOS and the FUNNIES
Back at Hell’s Gate, B.C. on September 8…the first two shots were taken from the foot bridge that crossed the Fraser River/Canyon…the first looking up-river — and the second almost straight down over the railing The bed of the bridge was an open grate system…solid as rock…but the fact that there was so much air beneath my feet was not the most comforting feeling. Once I had the photos, I got off it as quickly as I could. The third shot is looking down river, safely on terra firma once more. Click to enlarge.
Although gold and silver may have jumped higher on the jobless claims report, ‘da boyz’ were there to ensure that the response remained muted. And although I was certainly happy to see their respective prices rise — it was obvious that they weren’t going to let things get too far out of hand.
Besides which, the trading volumes in both precious metals continue to be exceptionally light — and Ted was certainly pleased with the fact that silver and gold prices were rallying on such little volume. But that fact also helped the Big 7 traders to keep things from getting too unruly.
Here are the 6-month charts for the Big 6 commodities…courtesy of stockcharts.com. In the four precious metals, only palladium was closed lower on the day — and below its 50-day moving average for the second day in a row. Copper regained everything it lost on Wednesday — and WTIC caught a big bid when Trump opened his pie hole on this issue. The Russians and Saudis are denying his claims — and it remains to be see who is speaking untruths. Click to enlarge.
And as I type this paragraph, the London/Zurich opens are less than a minute away — and I note that the gold price didn’t do much once trading began at 6:00 p.m. EDT on Thursday evening in New York. There was a brief but vicious up/down spike at 10 a.m. China Standard Time on their Friday morning — and it was back to normal a few minutes later. The price began to head quietly lower starting shortly after 11 a.m. CST — and its been creeping quietly lower since. It’s down $3.40 the ounce. Silver has been wandering quietly sideways throughout all of the Far East trading session — but is now up 2 cent as London opens. The platinum price has been very quietly stair-stepping its way lower since New York opened on Thursday evening — and it’s down 6 dollars currently. Palladium has been trading somewhat erratically sideways all night long here in North America — and after being down for the last while, has jumped higher — and is only down 5 bucks as Zurich opens.
Net HFT gold volume is exceedingly light…creeping up on 20,000 contracts — and there’s only 1,412 contracts worth of roll-over/switch volume in this precious metal. Net HFT silver volume is also very quiet at barely 6,000 contracts — and there’s only 700 contracts worth of roll-over/switch volume out of May and into future months.
The dollar index opened up 3 basis points at 100.21 once trading commenced around 7:45 p.m. EDT on Thursday evening in New York, which was 7:45 a.m. China Standard Time on their Friday morning. It has been chopping erratically sideways since — and as of 7:45 a.m. BST in London/8:45 a.m. CEST in Zurich, the index is higher by 10 basis points.
Today we get the latest job numbers report…at least that’s what I saw in a Bloomberg story posted further up in the Critical Reads section. I suspect that gold and silver will ‘react’ to that news — and the only thing I’ll be waiting to see, is how soon ‘da boyz’ show up after they do ‘react’.
Also today we get the latest Commitment of Traders Report for positions held at the close of COMEX trading on Tuesday. I spoke with Ted yesterday — and although he mentioned it briefly in passing, I don’t remember exactly what he had to say about it. However, just eye-balling the five trading dojis of the reporting week, it would certainly appear as if there should be some decreases in the commercial net short positions in both. But just how much remains to be seen.
And as I post today’s column on the website at 4:02 a.m. EDT, the first hour of London/Zurich trading has ended — and I see that the gold price began to tick a bit higher starting a very few minutes before the London open — and is now up 80 cents the ounce. Silver hasn’t done much — and is up 2 cents the ounce. Platinum is a few dollars lower — and is down 8 bucks — and palladium is now in plus column to the tune of 4 dollars.
Gross gold volume is still very quiet at a bit over 27,000 contracts — and minus current roll-over/switch volume, net HFT gold volume is only about 24,000 contracts. Net HFT silver volume is creeping up on 7,000 contracts — and there’s still only 759 contracts worth of roll-over/switch volume out of May and into future months in this precious metal. It’s very quiet out there.
With another hour of trading in the dollar index done, it’s easy to see that it began to head sharply higher starting at 1:50 p.m. China Standard Time on their Friday afternoon, but topped out currently at 8:30 a.m. BST — and as of 8:45 a.m. in London/9:45 a.m. in Zurich, the dollar index is now up 34 basis points.
That’s all I have for today. Have a good weekend…stay safe — and I’ll see you here tomorrow.