Gold & Silver Daily
"An engineered rally 'failure' at the 50-day moving average would be the perfect way to pull it off"

¤ Yesterday In Gold & Silver

The gold price traded pretty flat for most of the early going in the Far East trading session on their Thursday.  The tiny rally that developed at noon Hong Kong time, ran into a willing seller around 2:30 p.m.---and the price chopped lower until the Comex open.  It traded sideways from there into the London p.m. gold fix---and once that was out of the way, 'da boyz' and their algorithms showed up---and the low tick was printed at the 4 p.m. BST London close, which was 11 a.m. EDT in New York.  The gold price traded quietly higher from there before running into a determined seller short after 3 p.m. in electronic trading---and it traded sideways into the 5:15 p.m. close.

The high and low ticks were reported by the CME Group as $1,244.90 and $1,226.30 in the December contract.

Gold finished the Thursday session at $1,31.90 spot, down $9.10 from Wednesday's close.  Net volume was 128,000 contracts.

After opening lower, as per usual, the silver price chopped sideways, hitting its high tick at the same time as gold, just before 2:30 p.m. Hong Kong time---and about forty minutes before the London open.  The low of the day was printed around 12:40 p.m. in London---and the subsequent rally [such as it was] got capped shortly before the equity markets opened in New York.  From there the silver price chopped sideways in ten cent price range for the remainder of the day.

The high and low in silver were recorded as $17.25 and $17.035 in the December contract.

Silver closed in New York yesterday at $17.195 spot, up 2.5 cents from Wednesday's close.  Net volume was 28,000 contracts.

Platinum rallied six or seven bucks at the open in New York on Wednesday evening and, like gold and silver, hit its high shortly before 2:30 p.m. Hong Kong time on their Thursday afternoon.  Except for a tiny rally at the Comex open, the platinum price also got sold down, with its low tick coming at 11 a.m. EDT  in New York. Platinum rallied back ten bucks from there---and closed down only 2 bucks.

Palladium also rallied at the open in New York open on Wednesday evening.  But the attempted sell-off in palladium at 2:20 p.m. Hong Kong time met with little success---as the rally that began after the spike down at 11 a.m. EDT took the metal to its $778 the ounce high just before 12:30 p.m. in New York.  The rally got cut off at the knees at that point---and the metal didn't do much after that.  Palladium closed up 14 dollars.

The dollar index closed late on Wednesday afternoon in New York at 85.75---and then it did nothing of significance during the entire Thursday session, closing at 85.83---up 8 basis points.

The gold stocks gapped down at the open, but rallied back to unchanged shortly after 10 a.m. EDT, before getting sold down again.  Then they traded sideways before developing a positive bias at the 1:30 p.m. EDT close of Comex trading.  The gold shares really took off to the upside a few minutes before 3 p.m., but once they were in the green to the tune of 1 percent or so, there was a willing seller there to drop them back to unchanged.  However, they did manage to close slightly in the black, as the HUI finished the Thursday session up 0.21%---which is quite amazing when you consider that gold was closed down nine bucks on the day.  Some traders appeared to be bottom fishing.

The silver equities followed a very similar pattern at the beginning, but their low tick came shortly before 11:30 a.m. in New York---and they rallied steadily from there, culminating in an identical spike to gold's that also began shortly before 3 p.m.---and it met the same fate.  Nick Laird's Intraday Silver Sentiment Index closed up 0.63%.

The CME Daily Delivery Report showed that zero gold and 8 silver contracts were posted for delivery within the Comex-approved depositories on Monday.  Nothing to see here.

The CME Preliminary Report for the Thursday trading session showed that there are still 233 gold contracts open in October, down 2 contracts from yesterday's report.  Silver's open interest in October is now down to 10 contracts---minus the 8 from the previous paragraph, so the silver is just about done for the month---unless a surprise buyer demanding physical delivery shows up between now and next Thursday.

There were no reported changes in GLD yesterday---and as of 9:40 p.m. EDT yesterday evening, there were no reported changes in SLV, either.

Since yesterday was Thursday, the folks over at the Internet site updated the in/out activities of SLV as of the close of trading on Wednesday.  Joshua Gibbons, the "Guru of the SLV Bar List" reported on that--and here's what he had to say: "Analysis of the 22 October 2014 bar list, and comparison to the previous week's list -- 1,150,689.2 troy ounces were removed (all from Brinks London). No bars were added or had a serial number change."

"The bars removed were from: Russian State Refineries (0.4M oz), Uralelectromed (0.2M oz), Almalyk (0.2M oz), and 11 others."

"As of the time that the bar list was produced, it was overallocated 60.7 oz.  All daily changes are reflected on the bar list.  All of the bars removed are ones that had been in there for many years."

The link to Joshua's website is here.

For the second day in a row, there was no sales report from the U.S. Mint.

The was a big shipment in gold out of the Comex-approved depositories on Wednesday, as 321,500.000 troy ounces were shipped out JPMorgan's vault---and that works out to precisely 10,000 kilobars of the stuff---and probably China bound.  The link to that activity is here.

For a change, there wasn't much in/out activity in silver.  Nothing was reported received---and only 66,519 troy ounces were shipped out.  The link to that 'action' is here.

It was a very slow news day yesterday---and the pickings were slim.


¤ Critical Reads

Warren Buffett loses $2.5 billion in three days on Coca-Cola and IBM

It's not been a good week for billionaire investor Warren Buffett, as his bet on Coca-Cola and American tech giant IBM have cost him more than $2 billion in just three days.

On Monday, Buffett lost nearly $1 billion after shares in IBM plummeted to a three-year low after it badly missed third-quarter earnings estimates and announced it would pay $1.5 billion to ditch its loss-making chip division.  That’s bad news for Buffett considering his investment firm, Berkshire Hathaway, is the largest investor in IBM.

Yesterday, Buffett's week of hell continued after Coca-Cola shares plummeted six per cent in New York trading after it reported flat sales and lowered its guidance for the year.

The set of disappointing results from both companies come after Buffett admitted he made a "huge mistake" investing in Tesco, which has seen its share price more than halve in the past 12 months following a series of profit warnings.

This article appeared on the Internet site on Wednesday BST sometime---and today's first story is courtesy of reader 'h c'.


Shrinking is the New Growth: CAT Did it Through Buybacks, Not Sales

Those who have been following Caterpillar actual top-line performance know that things for the industrial bellwether have been going from bad to worse, with not only retail sales declining across the globe, as documented here previously, but with the current stretch of declining global retail sales now longer than during what was seen during the Great Recession.

And yet, moments ago, CAT, which is a major DJIA component, just reported blow-away EPS of $1.72, far above the $1.35 expected. How did it achieve this stunning number which has pushed DJIA futures higher by almost half a percent?

Simple: first there was the usual exclusions, with “restructuring costs” adding back some $0.09 to the bottom line number.

But the punchline was this: “In addition to the profit improvement, we have a strong balance sheet and through the first nine months of the year, we’ve had good cash flow.  So far this year, we’ve returned value to our stockholders by repurchasing $4.2 billion of Caterpillar stock and raising our quarterly dividend by 17 percent,” Oberhelman said.”

This Zero Hedge piece showed up on David Stockman's website yesterday sometime---and it's the first offering of the day from Roy Stephens.  It's worth your time.


Foreign central banks cut U.S. bond stakes to lowest since May

Foreign central banks slashed their holdings of U.S. Treasuries at the Federal Reserve to their lowest level since May, Fed data released on Thursday showed.

Analysts said the decline in U.S. government bond holdings likely stemmed from a combination of factors including booking profits on the recent rally in Treasuries, and the dollar which hit a four-plus year peak earlier this month.

"Some central banks might be selling dollars to arrest its rise against their currencies. While export-oriented countries typically like a stronger dollar, they don't want it go up too fast because they could make some imports very expensive," said Christopher Low, chief economist at FTN Financial.

This Reuters article appeared on their Internet site at 6:08 p.m EDT yesterday evening---and I found it in a GATA release that Chris Powell sent out just after midnight.


Interest rates could stay low permanently, says Bank of England deputy governor

Interest rates could now be permanently lower, a prominent member of the Bank of England’s committee of interest rate setters has warned.

Ben Broadbent, deputy governor for monetary policy at the Bank of England, said on Thursday that the low level of interest rates has “recently fuelled talk of a “secular stagnation””.

He said that “rates are likely to stay low for some time yet”, while whether the downward path of interest is a “secular” phenomenon remains “anyone’s guess”.

The Bank of England’s Monetary Policy Committee (MPC) voted to maintain Bank rate at its historic low of 0.5pc this October, as policymakers voted 7-2 to keep rates on hold.

As Jim Rickards said some time ago---no interest increases ever again.   But Broadbent won't admit that its the interference of the central banks in the free market that caused this problem in the first place. This article appeared on the Internet site at 9:29 a.m. BST on their Thursday morning.  This is the second offering of the day from reader 'h c'.


Bank of England targets end of bank bail-out era

The Bank of England could fire bank bosses on the spot and replace them with outside executives should the bank collapse under new rules designed to prevent taxpayers bailing out banks.

The Bank would step in and take control of a failing bank over a 48-hour period, usually a weekend, and decide how to deal with it in order to protect customers.

Instead of the Government stepping in, long-term bondholders would exchange debt for equity in the bank under a so-called “bail-in” method should it collapse.

If these methods, which were detailed by the bank on Thursday, had been in place when RBS went under in 2008, not a single penny of taxpayer funds would have been used to rescue the bank.

Ah, yes---preparing for the next collapse of the banking system in England---and soon to show up in your country as well.  This article appeared on The Telegraph's website at 4:14 p.m. BST yesterday---and I thank U.K. reader Tariq Khan for sharing it with us.


E.U. Banking Stress Tests: 'Far-Reaching Reforms Are Needed'

On Sunday, Europe will release the results of its banking stress tests. In an interview, former PIMCO head Mohamed El-Erian speaks with SPIEGEL about what to expect and how Europe's core countries are failing to adequately confront a flagging economy.

SPIEGEL: Mr. El-Erian, the results of the stress test on European banks will be published on Sunday. If you had a billion dollars to bet for or against European banks, what would you do?

El-Erian: Stock markets are altogether overvalued; people took risks in financial markets that were too high. Banking stocks often exaggerate the development: If stock markets rise, bank shares rise higher. If stock markets fall, they fall deeper. Therefore, I would buy neither stocks nor bank bonds prior to a correction. I would focus on highly secured banking bonds.

SPIEGEL: How poorly are Europe's banks doing?

El-Erian: Soon, banks will no longer be the biggest risk to the financial system and the economy. And five years from now, many credit institutions will be smaller than they are today, having discontinued some types of business, and will better support the real economy.

This short interview was posted on the German website at 4:48 p.m. Europe time on their Thursday afternoon---and it's worth reading.  It's the second contribution of the day from Roy Stephens.


Could France sell the Mona Lisa to pay off its debts?

France is in debt to the tune of 2,000 billion euros. Could selling off the country’s art make a dent in that figure?

Leonardo da Vinci’s Mona Lisa is probably the best known work of art in the world.  Her enigmatic smile beams down on hundreds of thousands of tourists a year at the Louvre Museum in Paris.

She could also bring a smile to France’s cash-strapped government if a sale could ease the national debt.

Heavily-indebted Portugal is doing something similar, putting its state-owned collection of Miro paintings up for sale.

This very interesting article showed up on the Internet site way back on September 2---and I thank reader M.A. for digging it up for us.


Barroso clashes with Italy over published budget warning

European Commission president Jose Manuel Barroso has hit out at Italy for publishing a letter the commission sent asking Rome to justify its budget for 2015.

"It was a unilateral decision by the Italian government to publish the letter on the finance ministry's website. The commission was not in favour of that letter being made public," Barroso said on Thursday (23 October).

The letter, sent Tuesday, says Italy's draft budget, submitted last week along with other national budgets for review in Brussels, "plans to breach" the debt and deficit rules underpinning the euro.

"According to our preliminary analysis Italy plans a significant deviation from the required adjustment path towards its medium-term budgetary objective," says the letter.

This news item, filed from Brussels, appeared on the Internet site at 3:32 p.m. Europe time yesterday afternoon---and I thank Roy Stephens for sending it.


Blackwater contractors convicted

A federal jury here on Wednesday convicted one former Blackwater contractor of murder and three of his colleagues of voluntary manslaughter in the deadly shootings of 14 unarmed civilians killed in Baghdad's Nisour Square seven years ago. The judge in the case ordered the men detained pending sentencing.

The massacre, which resulted in a wave of popular anger in Iraq against the United States, and especially the army of private security contractors which it employed there, contributed heavily to the Iraqi government's later refusal to sign an agreement with Washington to extend the US military presence there.

It also sealed the reputation of Blackwater, a "private military" firm headed by Erik Prince, a right-wing former Navy Seal, as a trigger-happy mercenary outfit whose recklessness and insensitivity to local populations jeopardized Washington's interests in conflict situations.

Seven years is better than never, I suppose.  This Asia Times article appeared on their website yesterday sometime---and I thank reader M.A. for sliding it into my in-box very late last night MDT.


China Cuts Saudi Oil Imports Amid Colombia Shipment Boost

China reduced oil imports from Saudi Arabia even as the world’s largest crude exporter cuts prices to lure Asian customers amid intensifying competition from Colombia to Oman.

Oil deliveries from Saudi Arabia fell 2.7 percent to 4.74 million metric tons last month from a year earlier, according to data released today by the General Administration of Customs in Beijing. Shipments from Colombia surged 389.6 percent, while Russian deliveries increased by 56.8 percent.

Asian consumers are benefiting from a wider choice of suppliers offering cheaper crude, from Venezuela to Alaska and Nigeria, as the highest U.S. production in almost 30 years cuts American demand. Saudi Arabia reduced prices for oil for Asia to the lowest in almost six years as it aims to maintain market share even as global benchmark prices have dropped about 25 percent from June.

“Chinese refiners are favoring supplies from Oman and South America over Saudi Arabia as their prices relative to output are more competitive,” Amy Sun, an analyst with Shanghai-based ICIS-C1 Energy, a consultant, said by phone from Guangzhou. “China is also increasing imports from Russia with a new contract signed last year.”

This Bloomberg news story, filed from Shanghai, showed up on their website at 4:05 a.m. Denver time on Wednesday morning---and I thank South African reader B.V. for sending it our way.


China's economic growth slows to 7.3%, near six-year low

China's economic growth cooled to 7.3 per cent between July and September from a year earlier, the weakest expansion since the global financial crisis and reinforcing expectations that Beijing will need to roll out more stimulus to avert a sharper slowdown.

With a faltering property market increasingly dragging on manufacturing and investment, the reading was the slowest for the world's second-largest economy since early 2009, when the growth rate tumbled to 6.6 per cent.

Economists polled by Reuters had expected third-quarter growth to cool to 7.2 per cent from 7.5 per cent in the second quarter, adding to worries about flagging global growth which have sent financial markets tumbling in recent weeks.

On a quarter-on-quarter basis, growth eased to 1.9 per cent versus expectations of 1.8 per cent and down from 2.0 per cent in the second quarter.

This article put in an appearance on The Sydney Morning Herald website on their Tuesday---and it's the third and final contribution of the day from reader 'h c'.


Whitlam and Australia's forgotten coup

John Pilger marks the death of former Australian prime minister Gough Whitlam with the one story missing from the 'tributes' to a man whose extraordinary political demise is one of America's dirtiest secrets.

Across the political and media elite in Australia, a silence has descended on the memory of the great, reforming prime minister Gough Whitlam, who has died. His achievements are recognised, if grudgingly, his mistakes noted in false sorrow. But a critical reason for his extraordinary political demise will, they hope, be buried with him.

Australia briefly became an independent state during the Whitlam years, 1972-75. An American commentator wrote that no country had “reversed its posture in international affairs so totally without going through a domestic revolution”. Whitlam ended his nation’s colonial servility. He abolished Royal patronage, moved Australia towards the Non-Aligned Movement, supported “zones of peace” and opposed nuclear weapons testing.

Although not regarded as on the left of the Labor Party, Whitlam was a maverick social democrat of principle, pride and propriety. He believed that a foreign power should not control his country's resources and dictate its economic and foreign policies. He proposed to "buy back the farm". In drafting the first Aboriginal lands rights legislation, his government raised the ghost of the greatest land grab in human history, Britain’s colonisation of Australia, and the question of who owned the island-continent’s vast natural wealth.

I came close to deleting this before I'd even read it, but once I had, I'm happy to present it to you today.  This falls into the absolute must read category---and it was posted on the Hong Kong Internet site Asia Times yesterday.  I thank Roy Stephens for sharing it with us.


Climate change proved to be 'nothing but a lie', claims top meteorologist

The debate about climate change is finished - because it has been categorically proved not to exist, one of the world's leading meteorologists has claimed.

John Coleman, who co-founded the Weather Channel, shocked academics by insisting the theory of man-made climate change was no longer scientifically credible. 

Instead, what 'little evidence' there is for rising global temperatures points to a 'natural phenomenon' within a developing ecosystem.

In an open letter attacking the Intergovernmental Panel on Climate Change, he wrote: "The ocean is not rising significantly."

"I have studied this topic seriously for years. It has become a political and environment agenda item, but the science is not valid."

Amen to that, dear reader!  This article appeared on the Internet site on Thursday sometime---and I consider it well worth reading.  I thank reader M.A. for bringing it to my attention---and now to yours.


Market Update: #HeartofGold & Gold Symposium Update

Last week, ABC Bullion was delighted to attend the 7th annual Gold Investment Symposium, which was held at the Sofitel Sydney Wentworth Hotel. As we have for the past few years now, we were proud to sponsor the event alongside our sister company Custodian Vaults, and were delighted to catch up with not only a number of key industry contacts, but also to talk to many of the attendees, including a large number who are clients of ABC Bullion.

Considering the general pessimism and apathy regarding gold as an investment right now, attendance was not as high as it was back in 2011 when gold was threatening to push through the USD $2000oz mark.

From a contrarian perspective, this is of course encouraging news, and whilst no one was denying or attempting to gloss over the pain that the last three years has brought, their was a general perception that maybe, just maybe, the precious metal community has weathered the worst of this corrective storm, and there will be more profitable times ahead.

Some news from "the land down under"---as we don't hear much from them.  It was posted on the Internet site eight days ago---and my thanks go out to Wesley Legrand for sharing it with us.


First Majestic CEO wants silver miners to form counter-cartel against futures shorters

First Majestic Silver CEO Keith Neumeyer, interviewed by Future Money Trends, argues that silver miners should form a counter-cartel to combat the investment houses selling silver short on futures markets.

My congratulations to Keith Neumeyer and Co. for stepping up to the plate on this issue.  I certainly hope that silver producers both big and small will rally around the flag that First Majestic has planted in the ground here, especially the producers based out of Vancouver.

This call to arms is not without dangers though, as Vancouver-based producers such as Pan American Silver and Silver Standard Resources will certainly not support such an initiative, as their masters at The Silver Institute wouldn't allow it.  Let's see what happens---but for moment I thing we should all be grateful to Keith, along with the entire organization, for having the gonads to do what was necessary. 

And if you want to help out here, you should contact the I.R. departments of any silver companies that you own shares in.  A few keystrokes into your computer's search engine will bring up the required 1-800 number or e-mail address---and be polite, but forceful---and don't procrastinate, do it NOW!

The interview runs for 15:41 minutes---and can be heard at their website linked here.  I found this in a GATA release posted on their Internet site very late last night.


Chris Powell: The crucial questions financial journalism won't ask and central banks won't answer

Remarks by Chris Powell, Secretary/Treasurer, Gold Anti-Trust Action Committee Inc...New Orleans Investment Conference...Thursday, October 23, 2014

For many years this conference has bravely invited GATA Chairman Bill Murphy and me to speak here about the evidence of manipulation of the gold market, particularly manipulation undertaken directly or indirectly by central banks, and every year there has been new documentation to report. This documentation has been compiled at GATA's Internet site,

The last two months have brought confirmation that, as we long have suspected, GATA has outlined only a small part of the surreptitious market manipulation being undertaken by central banks -- that this manipulation is actually comprehensive, that it covers nearly every major market in the world.

This confirmation is largely the work of Eric Scott Hunsader, founder of the market data and research company Nanex in Winnetka, Illinois, who publicized, through the Zero Hedge Internet site, documents recently filed with the U.S. government, two of them with the Commodity Futures Trading Commission and one with the Securities and Exchange Commission.

The first document is a letter to the CFTC, dated January 29 this year, from CME Group, the operator of the major futures exchanges in the United States, and signed by CME Group's managing director and chief regulatory counsel, Christopher Bowen: The letter notifies the CFTC of changes to CME Group's discount trading program for central banks. That is, the letter reveals that central banks are getting discounts for trading all futures on CME Group's exchanges, including the New York Commodity Exchange, the major mechanism for "price discovery" in the monetary metals.

This speech that Chris gave yesterday in New Orleans falls into the absolute must read category, so top up your coffee and have at it.  It was posted on the Internet site late last night.



¤ The Funnies

Here's a photo of yesterday's partial eclipse of the sun, which was very noticeable here in Edmonton yesterday afternoon.  This photo is one I stole from the Internet site.  It was taken by James W. Young in Wrightwood, California.  The sunspot cluster visible in this photo is larger than the planet Jupiter.

Sponsor Advertisement

Alexandria doubles gold resources at 100% owned Sleepy Property in Val d’Or, Quebec; inferred resources have increased to 307,350 ounces of gold at a 3 g/t cut-off. Not only has the resource been expanded, but the grade has increased by 60% to an average of 5.1 g/t Au. The Sleepy project is now the size and grade of average historical mines in Val d’Or and, better, it is a disseminated gold-pyrite deposit rather than a narrow high grade deposit.

Since Alexandria discovered Quebec’s next gold mine in 2012-2014 at the Akasaba West Zone, the company has embarked on an exploration program to find more similar gold-copper resources on the western half of its property package. Through the compilation and digitization of historical exploration data over the broader property package, company geologists have identified significant copper-gold targets. The company is in the midst of a 12,000 m drill program testing geophysical targets coincident with these gold-copper targets, including a 7 km long porphyry copper-gold trend in and around the contact zone of the East Sullivan granitic stock. Alexandria’s estimated current resources now total 1.6 million oz. of gold (696,000 M&I; 731,000 Inf.) from three advanced exploration projects on its large 35 km long property package in Val d’Or.


¤ The Wrap

Since the price highs ($21.50) of mid-July thru the current COT Report, commercial traders, as a group, have purchased 42,400 net silver contracts on the COMEX, or the equivalent of 212 million oz. (This is the headline COT number). The technical funds have sold approximately 50,000 net contracts (long liquidation, but mostly new short selling) in that time (250 million oz), or more than 100% of what the commercial bought (other traders account for the difference). My point is that the technical funds did all the selling in silver---and about the same in the other metals. How could this not be, forget being the prime influence, the sole price influence?

The difference in market structure from July until today is the only difference that matters in all five metals. [Gold, silver, platinum, palladium, copper, plus crude oil---the Big 6. - Ed] There have been no demonstrable changes in actual supply and demand in any of these metals (except, perhaps, to the bullish side of the equation). The only documented change is in market structure on the COMEX/NYMEX. I don’t doubt that China, Russia and India have bought important quantities of gold and silver over the past two years, but that buying has not caused the price of each to increase. The only possible explanation for price behavior for the last few months and years comes from COMEX/NYMEX positioning, as documented in the COT Report. - Silver analyst Ted Butler: 22 October 2014

I wasn't entirely surprised by yesterday's price decline in gold, as the 'failure' of gold to break through its 50-day moving average is something that I indicated might occur---and now appears to be the case.

And as Ted Butler mentioned in his quote from yesterday---"Gold appears to be the only metal experiencing technical fund buying to date---and that still raises the possibility of the commercials rigging gold prices lower temporarily to lure the technical funds who bought, back to the sell side. In that case, silver may come under pressure, but it’s hard to see how many technical funds can be maneuvered to sell, seeing as managed money shorts are already at an all-time record high."

An engineered rally 'failure' at the 50-day moving average would be the perfect way to pull it off, as the T.A. analysts just eat this stuff up, even though they know perfectly well that their models [respected, in most cases] aren't worth a tinker's damn in a managed price environment.  But they have to keep up appearances, as their paycheques/paychecks depend on them not seeing it, or breathing a word of it to their readers/paying subscribers even if they do.

Here are the 6-month gold and silver charts updated with yesterday's data.

And as I write this paragraph, the London open is less than 15 minutes away.   The gold price, which got sold down a bit in early Far East trading, has now rallied back to unchanged---as have silver and platinum.  Palladium is actually up five bucks on the day.  Gold volume currently sits at 13,500 contracts---and silver's volume is a hair under 3,000 contracts.  The dollar index is drifting quietly lower---and is down 8 basis points at the moment.

Today we get the latest Commitment of Traders Report for positions held at the close of Comex trading on Tuesday.  As Ted Butler and I have mentioned on several occasions, we'll see more deterioration in the Commercial net short position in gold---and a quick peek at the price action during the reporting week certainly confirms that.  It's just a matter of how bad it is.  I'm guessing something similar to last week's number---and hopefully under 20,000 contracts if it isn't.

Of course Wednesday's and Thursday's price action will have already negated a large chunk of this expected deterioration and, depending on what happens during the remainder of the Friday trading session, today's COT Report may turn out to be 'yesterday's news'---a not uncommon phenomenon when JPMorgan et al want to keep their market-rigging activities out of the public gaze for as long as possible.

As for silver, the quiet price action during the reporting week indicates that there shouldn't be too much change in the Commercial net short position in either direction.

And as I send this out the door at 4:55 a.m. EDT, I see that all four precious metals got sold down a hair at the London open, but have now rallied an equal amount since---and are all back to unchanged from yesterday's close in New York.  Palladium is the only exception, as it's still up six bucks.  Net gold volume is now up to just under 25,000 contracts---and silver's volume is sitting at an even 5,000 contracts.  The dollar index is back to basically unchanged.

Once again I'll be watching the price action in gold closely to see if JPMorgan et al can continue to engineer the price lower for the third day in a row---and with today being the last trading day of the week, that outcome wouldn't surprise me.

Enjoy your weekend, or what's left of it if you live west of the International Date Line---and I'll see you here tomorrow.