Casey Research Publication
Gold & Silver Daily
""Da boyz" could hit gold for another $50 easily if they choose to do so"

¤ Yesterday In Gold & Silver

The gold price drifted quietly lower in Far East trading on their Tuesday until around 2 p.m. Hong Kong time---and it was about then that the HFT boyz showed up, with the final kick in the pants coming at 8:27 a.m. EDT---seven minutes after the New York trading session began.  Gold futures traded was halted, as gold gapped down $12 in an instant, as 4,000 contracts were dumped in seconds.  In less that three minutes it was all over, with the low tick coming a precisely 8:30 a.m.

From there, the price recovered a bit until noon---and then traded pretty flat for the remainder of the day.

The CME Group recorded the high and low price ticks as $1,328.40 and $1,284.40 in the June contract.

Gold finished on Tuesday at $1,302.40 spot, down $24.20 from Monday's close.  Volume, net of April and May, was very heavy at 198,000 contracts.

The silver price traded flat until about 9 a.m. Hong Kong time---and then it, too, came under selling pressure.  There was a tiny rally beginning at the London a.m. gold fix, but that was dealt with in short order---and that's when JPMorgan et al. really went to work.  Like gold, the big selloff began at, or minutes before, the Comex open---and silver was down 40 cents in less than fifteen minutes as the their HFT traders worked their magic.  The low was also at precisely 8:30 a.m. EDT as well.

The subsequent rally worked its way higher in fits and starts until shortly after 4 p.m. in electronic trading---and from there it sold off a bit into the 5:15 p.m. close.

The high and low ticks were recorded at $19.995 and $19.22 in the May contract---and intraday move of almost 4%.

Silver finished the Tuesday session at $19.56 spot, down 40.5 cents from Monday's close.  Net volume was very high at 54,500 contracts.

Platinum and palladium weren't spared by "da boyz" either, although the timing of the engineered price declines varied with each metal, as most of their attention was taken up in silver and gold.  Here are the charts.

The dollar index finished late on Monday afternoon in New York at 79.76---and then chopped and flopped around a bit during the Tuesday session. It got as high as 79.87---but sold off a bit into the close finishing the day almost unchanged at 79.79.

Not surprisingly, the gold stocks gapped down a hair over 3% at the open, rallied a bit---and then headed to their low of the day which came shortly before 11:30 a.m. EDT in New York.  From there, the stock rallied a respectable amount [all things considered] and the HUI closed down only 2.11%.

The silver equities followed a very similar chart pattern---and Nick Laird's Intraday Silver Sentiment Index only closed down 1.79% when all was said and done.

The CME's Daily Delivery Report showed that 97 gold and five silver contracts were posted for delivery within the Comex-approved depositories on Thursday.  Jefferies was the big short/issuer with 86 contracts---and JPMorgan and Canada's Scotiabank stopped 77 contracts combined.  Scotiabank accepted delivery on all five silver contracts as well. The link to yesterday's Issuers and Stoppers Report is here.

Just as a matter of interest, there are still about 700 gold contracts open [net of the above 97 gold contracts just issued for delivery] in the April delivery month at the moment---and it will be interesting to see who the short/issuer is when they finally decide to crawl out from under their rock.

There was a smallish deposit in GLD again yesterday.  This time an authorized participant deposited 19,267 troy ounces.  And as of 9:41 p.m. EDT yesterday evening, there were no reported changes in SLV.

There was another sales report from the U.S. Mint again yesterday.  The 2,500 troy ounces of gold eagles---1,500 one-ounce 24K gold buffaloes---100 platinum eagles---and 282,500 silver eagles.

There were no reported in/out movements in gold over at the Comex-approved depositories on Monday---but it was another busy day in silver, as 743,338 troy ounces were reported received---and 140,350 troy ounces were shipped out.  The link to that action is here.

In this space yesterday I posted the six-month chart for the Ukrainian Hryvnia---their not-quite-eight-year-old national currency.  Nick decided to up the ante and whipped up this chart that shows the entirety of this currency's young life, whose longevity is being threatened at the moment.  It sure makes gold look good.

Here's a two-minute tick chart of the gold price action on the Comex yesterday---a price pattern that JPMorgan et al. have presented to us before on numerous occasions.  The times on the chart are Mountain Daylight Time [BST-7].  I thank reader Brad Robertson for sending it our way.

I have a decent number of stories today---and I hope that there are few in the list below that interest you.


¤ Critical Reads

Debt Burdens Soar for Major US Companies

Large U.S. companies have more than tripled their debt loads in the past three years, enabling them to spend money without dipping into their record-high cash reserves.

The spending has included share buybacks, dividends and capital investments. Stock buybacks and dividends registered $214.4 billion in the fourth quarter, according to The Wall Street Journal.

The companies are reluctant to spend cash partly because much of it is held offshore and would be subject to taxes if repatriated, the Financial Times reports.

From 2010 to 2013, the 1,100 companies rated by Standard & Poor's for five years or longer saw their combined cash reserves climb $204 billion to $1.23 trillion, according to the FT. That pales in comparison to the $748 billion jump in gross debt to $4 trillion during that period.

This short, but must read news item, was posted on the Internet site early yesterday morning EDT---and today's first story is courtesy of West Virginia reader Elliot Simon.


France Is the New Cauldron of Eurosceptic Revolution

Britain is marginal to the great debate on Europe. France is the linchpin, fast becoming a cauldron of Eurosceptic/Poujadist views on the Right, anti-EMU reflationary Keynesian views on the Left, mixed with soul-searching over the wisdom of monetary union across the French establishment.

Marine Le Pen’s Front National leads the latest IFOP poll for the European elections next month at 24%. Her platform calls for immediate steps to ditch the euro and restore the franc (“franc des Anglais” in origin, rid of the English oppressors), and to hold a referendum on withdrawal from the EU.

The Gaullistes are at 22.5%. The great centre-Right party of post-War French politics is failing dismally to capitalise on the collapse in support for President François Hollande.

The Parti Socialiste is trailing at 20.5%. The Leftist Front de Gauche is at 8.5% and they are not exactly friends of Brussels.

This Ambrose Evans-Pritchard blog was posted on the Internet site yesterday sometime---and it's the first story of the day from Roy Stephens.


Russian Holdings of Treasuries Fall to Lowest Since 2011

Russian holdings declined for a fourth straight month, to $126.2 billion, from $131.8 billion in January, according to figures released today in Washington as a part of a monthly report on foreign holders of Treasuries as well as international portfolio flows.

Russia might have been selling Treasuries, world’s most liquid assets, as part of an effort to limit a decline in the ruble, which lost 2% versus the dollar in February, the biggest drop that month among 24 emerging-market peers tracked by Bloomberg. The currency weakened amid rising tensions in Ukraine’s Crimean peninsula.

“Russia’s been slowly shedding holdings,” said Gennadiy Goldberg, a U.S. strategist at TD Securities USA LLC in New York. “When you try to defend your currency, this is when you really use those Treasury reserves.”

Russia might have also switched custodian from the Federal Reserve to an offshore center, based perhaps in the U.K., said Sebastien Galy, a senior currency strategist at Société Générale SA in New York. If that were the case, the securities would show up in the Treasury’s survey as British holdings.

This Bloomberg news item, filed from Washington, appeared on their Internet site late yesterday morning Denver time---and my thanks go out to Washington state reader S.A. for sending it along.


Russia's Bond Market Is Achilles Heel as Showdown with West Escalates

Russia is at increasing risk of a full-blown financial crisis as the West tightens sanctions and Russian meddling in Ukraine pushes the region towards conflagration.

The country’s private companies have been shut out of global capital markets almost entirely since the crisis erupted, causing a serious credit crunch and raising concerns that firms may not be able to refinace debt without Russian state support.

“No Eurobonds have been rolled over for six weeks. This cannot continue for long and is becoming a massive issue,” said an official from a major Russian bank. “Companies have to roll over $10bn a month and nothing is moving. The markets have been remarkably relaxed about this, given how dangerous it is. Russia’s greatest vulnerability is the bond market,” he said.

This is another offering from Ambrose Evans-Pritchard.  This one was posted on The Telegraph's Web site late on Monday evening BST---and it's the second contribution of the day from Roy Stephens.  It's worth skimming.


Seven Ukraine/Russia-Related Stories

1. West pressures Russia as separatists tighten grip on east Ukraine: France24  2. Ukraine Falters in Drive to Curb Unrest in East: The New York Times  3. 'We Will Shoot Back': All Eyes on Russia as Ukraine Begins Offensive in East: Spiegel Online  4. Putin: Ukraine’s radical escalation puts it on edge of civil war: Russia Today  5. Those who don’t lay down arms, will be destroyed - Ukrainian military op commander: Russia Today  6. Villagers stop armored column of Ukrainian troops near Lugansk: Voice of Russia  7. Ukraine on brink of civil war as Kiev sends in troops: The Telegraph

The Spiegel Online story was originally headlined "Tensions in eastern Ukraine rise as Kiev offensive begins."

[All of the above stories are courtesy of Roy Stephens, for which I thank him.]


BRICS Countries to Set Up Their Own IMF

Very soon, the IMF will cease to be the world's only organization capable of rendering international financial assistance. The BRICS countries are setting up alternative institutions, including a currency reserve pool and a development bank.

The BRICS countries (Brazil, Russia, India, China and South Africa) have made significant progress in setting up structures that would serve as an alternative to the International Monetary Fund and the World Bank, which are dominated by the U.S. and the EU. A currency reserve pool, as a replacement for the IMF, and a BRICS development bank, as a replacement for the World Bank, will begin operating as soon as in 2015, Russian Ambassador at Large Vadim Lukov has said.

Brazil has already drafted a charter for the BRICS Development Bank, while Russia is drawing up intergovernmental agreements on setting the bank up, he added.

In addition, the BRICS countries have already agreed on the amount of authorized capital for the new institutions: $100 billion each. "Talks are under way on the distribution of the initial capital of $50 billion between the partners and on the location for the headquarters of the bank.

This story was posted on the Russia Beyond the Headlines Web site on Monday---and it's courtesy of Elliot Simon.


Chinese Economic Growth Continues to Slow

China's Q1 GDP beat expectations rising 7.4% year-over-year.

Economists polled by Bloomberg were looking for Q1 GDP to rise 7.3%. But this was down from 7.7% the previous quarter, showing that China's economy continues to slow. 

Quarter-over-quarter however GDP was up 1.4% or 5.7% annualized. This was also slower than revised 1.7% growth in Q4 2013 and 7% annualized.

Meanwhile, year-to-date Chinese retail sales were up 12%, beating expectations for an 11.9% rise. For March, retail sales were up 12.2%.

I would expect that China's GDP numbers are massaged to perfection, just as much as the numbers coming out of the United States these days.  This business news item was posted on the Bloomberg Web site late yesterday evening MDT---and it's another contribution from Roy Stephens.


Japan Risks Public Souring on Abenomics as Prices Surge

Prime Minister Shinzo Abe’s bid to vault Japan out of 15 years of deflation risks losing public support by spurring too much inflation too quickly as companies add extra price increases to this month’s sales-tax bump.

Businesses from Suntory Beverage and Food Ltd. to beef bowl chain Yoshinoya Holdings Co. have raised costs more than the 3 percentage point levy increase. This month’s inflation rate could be 3.5%, the fastest since 1982, according to Yoshiki Shinke, the most accurate forecaster of Japan’s economy for two years running in data compiled by Bloomberg.

The challenge for Abe and the Bank of Japan is to keep the public focused on the long-term benefits of exiting deflation when wages are yet to pick up and, according to BOJ board member Sayuri Shirai, most people still see price gains as “unfavorable.” Any jump in inflation that’s perceived as excessive by a population more used to prices falling could worsen consumer confidence and make it harder to boost growth.

A policy of "Inflate or die" is fraught with danger, as the Japanese government is discovering to its dismay.  This Bloomberg piece, filed from Tokyo, was posted on their Internet site in the wee hours of Monday morning Denver time.  I "borrowed" this story from yesterday's edition of the King Report---and it's worth reading.


Kyle Bass: Why Japanese Bonds Look "Terrible"

Hayman Capital's Kyle Bass believes Wall Street's recent declines in the biotech and social media sector, which spread to global stock markets last week, shows cracks in the Japanese economy.

The Japanese Nikkei saw a huge drop last Friday, but the country's benchmark 10-year government bonds did not see yields change as investors fled stocks. Bass, one of the biggest critics of the Japanese economy, has made a big bet on Japan's economy devolving into a debt crisis.

During an interview on CNBC's "Squawk on the Street" on Tuesday, the hedge fund manager said questions remain whether Japan will lose control of interest rates or whether the yen can serve as an "escape valve." Bass sees inflation quickly surpassing Japaneses bond yields, he said.

Kyle only gets 1:03 minutes in this very brief appearance on CNBC yesterday---but it's a must watch.  I borrowed this from Tres Knippa's daily newsletter yesterday.


Four King World News Blogs

1. Art Cashin: "The Reason Gold, Silver and Commodities Are Getting Smashed"  2. Dr. Stephen Leeb: "Gold and Silver Smashed as incredible Events Unfold in Europe"  3. Dr. Paul Craig Roberts: "U.S. Now Close to Total Collapse"  4. Gerald Celente: "The Vampire Squid, Gold and the Global Ponzi Scheme"

[Please direct any questions or comments about what is said in these interviews by either Eric King or his guests to them, and not to me. Thank you. - Ed]


Zero Hedge: Gold Futures Halted Again on Latest Furious Slam Down

It seems the two words "fiduciary duty" are strangely missing from the dictionary of the new normal's asset management community. This morning, shortly before 8:27 a.m. ET, someone decided that it was the perfect time to dump thousands of gold futures contracts worth over half a billion dollars notional. This smashed gold futures down over $12 instantaneously, breaking below the 200-day moving averaged and triggering the futures exchange to halt trading in the precious metal for 10 seconds.

Ah, yes---there are those words "fiduciary duty" once again---the other thing, along with their testicles, that precious metal mining executives leave hanging on a nail in the hall closet before they head to the office.  This tiny Zero Hedge piece was posted on their Web site an hour after the Comex event itself---and the charts are worth a look.  I found this worthwhile news item in a GATA release yesterday.


Dave Kranzler Reports on the Latest Manipulation of the Gold Price

Shortly after the Shanghai gold market closed last night, the market manipulators went to work on the gold price.  Gold was taken down another $20 during the morning trading in London, primarily in three HFT trading induced “mini flash crashes.” There were not any related news reports or events that would have triggered the relentless selling of paper gold (Comex futures via the Globex system and LBMA forward

As soon as the Comex floor trading opened at 8:20 a.m. EST, nearly 4,000 contracts were dropped instantaneously onto the floor and into the Globex system.  This is over a half a billion dollars worth of gold – over 10 tonnes of paper gold – in a nanosecond.    This amount represents 47% of the amount of actual physical gold that was reported to be available for delivery by the Comex yesterday.  The sudden burst in volume halted the Comex computer system for 10 seconds.  The contract bomb caused an immediate $16 plunge in the price of gold.   Over a period of seven minutes from the time the Comex opened, over 14,000 contracts traded.  This represented over 18% of the total volume in Comex contracts that had traded in the previous 14 hours of trading starting at 6 p.m. EST the night before.

Obviously this is was intentional and determined selling  of paper gold for the purposes of driving the price a lot lower.  The news reported over the last 24 hours, if anything, should have caused the price of gold to move higher. This includes the re-escalation of the events in Ukraine, an inflation report released this morning which showed that the rate of inflation in March was double the rate that was expected by Wall Street forecasters and a report of manufacturing activity in the northeast which was significantly  lower than expected.

This short must read commentary showed up on the Internet site yesterday---and I thank Brad Robertson for sending our way.


China Gold Demand Rising 25% by 2017 as Buyers Get Wealthier

Gold demand in China, which overtook India as the largest user last year, will rise about 25% in the next four years as an increasing population gets wealthier, according to the World Gold Council.

Consumer demand will expand to at least 1,350 metric tonnes by 2017, the London-based council said in a report today. Growth may be limited this year after 2013’s price decline spurred consumers to do more buying last year, it said. China accounted for about 28% of global usage last year, the council estimated in February.

Buying accelerated last year as prices slumped 28%, the most since 1981, and the nation became the top buyer in place of India, where import restrictions curbed demand. China’s economy will expand 7.4% this year, economists surveyed by Bloomberg estimate. While that’s set to be the least since 1990, it’s still more than double expected growth in the U.S.

This Bloomberg story showed up on their Web site during the Denver lunch hour yesterday MDT---and it's another gold-related story that I found over at the Internet site yesterday.  The World Gold Council's report on which this story is based is linked here.


Much More to Come in China’s Already "Breathtaking" Gold Story

The scale, scope and speed of the development of the gold market in China to date has been “quite breathtaking” – and there is still a lot more to come, World Gold Council (WGC) investor relations manager John Mulligan indicated on Tuesday.

Speaking to Mining Weekly Online from London, Mulligan revealed that the WGC was engaged in ongoing discussions to support initiatives to make gold even more accessible in China and that various Chinese gold organisations were simultaneously setting out to modernise the entire gold supply chain from mining through to fabrication and appropriate technologies.

In its latest report, titled "China's gold market: progress and prospects," the WGC explains why the Chinese gold market will continue to expand, irrespective of short-term blips in the economy, and calculates that China’s middle class will grow by another 200 million people in the next six years, taking the total in the middle-income bracket to 500 million.

This is the same story as the prior Bloomberg piece, but with a slightly different spin.  This version, filed from Johannesburg, was posted on the Internet site yesterday.  I thank reader Richard Murphy for finding it for us.


Wall Street Journal Spins a Gold-Bullish Report to Bearish

China's appetite for gold is waning after a decade-long buying spree, suppressed by the country's economic slowdown and constrained credit markets.

Demand in the world's biggest gold consumer is likely to stay flat in 2014, according to estimates from the World Gold Council. Gold demand in China has expanded every year since 2002, when it declined, according to the industry group, whose forecasts are closely watched in the gold market.

Decelerating Chinese gold demand could threaten the recent recovery in gold prices, some investors and analysts say.

It's hard to believe that the WSJ could spin a sow's ear out of a silk purse, but when something has to be spun with a negative slants, there's always someone up to the task---especially when their jobs may be on the line if they don't.  A lot of gold and silver columnists and so-called experts fall neatly into this category as well.

The above three paragraphs are all there is to this WSJ story---at least that's all there is posted in the clear; and you need a subscription to read the rest.  This is another news item I found on the Internet site yesterday.


Lawrence Williams: Chinese Take-Away – WGC Study Leaves Many Questions Unanswered

Further, although this report deals specifically with Chinese demand, the general urbanisation and earnings growth prevalent among the whole Asian gold-oriented populace – which hugely exceeds that of China alone – will also have a similar impact. Gold demand will be increasing hugely so where is the supply going to come from? And supply shortfalls will ultimately result in price increases – perhaps very substantial ones, but maybe not quite yet.

As gold bulls will be only too aware, such factors may take a long time to come to fruition and gold investment has to be seen as for the long term. It cannot be relied upon for short-term gains. That is very much the way the Asian market views it and ultimately – unless there is a total sea change in the way this sector views it – gold will undoubtedly prove perhaps the best asset class of all, particularly as the East begins to dominate global trade and finance as it surely will. Other assets will wax and wane but gold, which has stood the test of time through all kinds of political and financial upheavals over hundreds of years, will likely continue to do so in the years ahead.

Yes, one of these days the gold price will be allowed to rise to something resembling a fair market supply vs. demand price, but as Lawrie is more than aware, it will only happen with the blessing of JPMorgan et al.---and the rest of short sellers of last resort in the paper precious metal market.  This commentary was posted on the Internet site yesterday.


Koos Jansen: Shanghai Gold Exchange Withdrawals Equal Chinese Gold Demand, Part 3

Gold researcher and GATA consultant Koos Jansen tonight provides his most detailed review yet of China's gold demand and explains why he thinks it is not as much as recently estimated by GoldMoney research director Alasdair Macleod.

Jansen's commentary is headlined Shanghai Gold Exchange Withdrawals Equal Chinese Gold Demand, Part 3, and it's posted at his Internet site,  And the GATA releases just keep on coming---and I thank Chris Powell for wordsmithing the paragraph of introduction.


Hardly a Mention of Central Banks in Financial Times Report on London Gold Fix

The fix remains the global gold benchmark, used by miners, central banks, jewellers and the financial industry to trade gold bars, value stocks and price derivative contracts. The original five bullion dealers have been replaced by five banks: HSBC, Deutsche Bank, Scotiabank, Barclays, and Société Générale. But the process and traditions are little changed; had Rothschild not sold its fixing seat in 2004, the members might still be meeting in its oak-panelled boardroom with small Union Jack flags on their desks, rather than via conference call.

To supporters of the gold fixing, its longevity is a mark of its efficiency and utility. To a growing group of critics, however, the benchmark is opaque, old fashioned and vulnerable to market abuse.

Pressure to reform is coming from several directions.

Since uncovering evidence of alleged abuse by bankers of the Libor and forex benchmarks, regulators have been scrutinising other big financial benchmarks for signs of weakness. The German watchdog BaFin has requested documents from Deutsche Bank, which has put its seat up for sale, as part of a precious metals market review. Academics have questioned the fix's fairness and suggested possible collusion. Smelling blood, US lawyers launched at least three class action suits in March alleging rigging. From being an asset of considerable prestige, a fixing seat may be turning into a liability.

This longish Financial Times story from Monday---which is long on drivel and short on substance---was posted in the clear on the Internet site yesterday---and it's not worth reading, at least in my opinion.



¤ The Funnies

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¤ The Wrap

If silver prices rally enough from here in the short run (always a 50-50 proposition), the technical funds can be expected to buy and the raptors can be expected to sell and take profits. Usually the raptors need a rally of a dollar or more to begin to sell. Where does that leave JPMorgan and the other big shorts? Normally, the big commercial shorts sell on rallies, but since they just, effectively, sold on the way down, will they just keep adding silver shorts regardless of price direction? - Silver analyst Ted Butler: 12 April 2014

As the Zero Hedge commentary in the Critical Reads section so succinctly put it, these HFT price smashes were for one purpose only---and that was to get all four precious metal prices as low as possible, and as quickly as possible.  It was not-for-profit selling, pure and simple.  Supply and demand, the world's financial and monetary system, along with the Ukraine/Russia situation mean nothing.  Prices are set by JPMorgan et al. in the Comex futures market irrespective of anything else.  Why a large portion of the gold and silver commentators won't go there is impossible to fathom, but any other explanation they may come up with is pure bulls hit.

We have options and futures expiry coming up next week---and I'm sure that JPMorgan et al. wanted as many of these contracts to finish out of the money as they could.  And as both Ted Butler and I have warned, the Commitment of Traders Report has been configured for a down-side engineered price decline for quite some time---and "da boyz" did not disappoint yesterday.

Here are the six-month charts for both gold and silver showing yesterday's price declines in all their ugliness.

Ted feels that we are pretty much done to the downside in silver.  There may be more price pain to go, but it now becomes a question of how many more long contracts JPMorgan et al. can get the technical funds to puke up---and how many possible short positions they can get these same funds to put on.  And as Ted also said, the raptors [the Commercial traders other than the Big 8] were buying every long contract that came their way yesterday.  One would like to assume that the Big 8 short holders were doing likewise---and covering part of their grotesque short positions---but as Ted pointed out in the quote just above, that hasn't been the case lately.

As for gold, there's still a lot of room to go.  Ted mentioned that the Commercial net short position in gold improved by as much as 20,000 contracts yesterday---and looking at the gold chart, I'd guess that "da boyz" could hit gold for another $50 easily if they choose to do so, as the technical funds still have a very large net long position, despite the pounding they took yesterday.  But can they, or will they, is always the question---and we got part of that answer yesterday.

Yesterday at the close of Comex trading was also the cutoff for this Friday's Commitment of Trader Report---and the question that always arises on big price moves the day of the cutoff is whether or not all of yesterday's price/volume action will be reported in a timely manner.  They weren't two weeks ago when this same set of circumstances occurred---and we won't know for sure until the report comes out at 3:30 p.m. EDT on Friday.

And as I mentioned in The Wrap yesterday, the "Managed Money" category in the Disaggregated COT Report, which is usually net short at this point of any engineered price decline, is currently net long 8,400 contracts---and it will be interesting to see how much has changed in this category when the new COT Report comes out on Friday.

So we wait.

As I type this paragraph, the London open is about 15 minutes away.  All four precious metal got sold down a bit more in Far East trading, but now are rallying a bit as the London open approaches.  Gold volume is already north of 28,000 contracts---and silver, net of rollovers, is around 7,000 contracts.  Not exactly light volume, but most of it is of the HFT variety anyway.  And not that it matters, but the dollar index is down a small handful of basis points.

And as I send this down to Stowe, Vermont at 5:05 a.m. EDT, all four precious metals are back at, or just above their Tuesday closing prices in New York.  Gold volume is at 43,000 contracts---and silver's net volume is at 10,000 contracts---and almost all of it, especially in gold, is still of the HFT variety.  The dollar index has rolled over a bit and is now down 14 basis points.

I have no idea what to expect when I check in later this morning---but nothing will surprise me, nor should it you.

See you tomorrow.

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