As Chris Powell and Ned Naylor-Leyland stated in different news items…the press won’t touch this story.

The gold price struggled slowly higher in Far East trading on their Wednesday, but that all ended once London opened…and it then traded sideways until about half past lunchtime over there.

Then the selling began…and by 10:55 a.m. in New York, five minutes before the London close,  the high-frequency trader had gold down to its low price tick of the day…which Kitco recorded as $1,683.80 spot.

The subsequent rally got cut off at the knees at noon Eastern time…and it then traded sideways for the rest of the day.

Gold closed at $1,694.30 spot…down only $2.50 from Tuesday’s close.  Net volume was pretty decent…around 155,000 contracts.

As is usually the case, the price path for silver was almost identical, so I’ll spare you the play-by-play on that.

Silver actually closed flat at $32.91 spot.  Net volume was in the neighbourhood of 38,500 contracts.

A cursory glance at both the gold and silver charts shows that the same ‘market forces’ were at work on these metals on both Tuesday and Wednesday. 

Platinum and palladium also got sold down during the Comex trading session yesterday, but both recovered and closed with minor gains.

The dollar index traded flat until the 8:00 a.m. GMT London open yesterday morning…and then rallied about 20 basis points or so by 8:00 a.m. in New York about five hours later.  From there it didn’t do much into the close…and finished the Wednesday session at 79.82…up 15 basis points.

As has been the case this week, there was no co-relation between the dollar index and the precious metal prices.

There was no saving the gold stocks yesterday, as they got sold off sharply within the first hour of trading.  Then they traded sideways for many hours before sliding further into the close.  The HUI finished down a chunky 2.83%.

The silver shares did marginally better…and Nick Laird’s Silver Sentiment Index closed down 1.83%.

(Click on image to enlarge)

I have no explanation as to why the shares got sold off in both metals yesterday…just like I’ve had no explanation for the counterintuitive share price action that we’ve experienced all week.

The CME’s Daily Delivery Report showed that 64 gold and 60 silver contracts were posted for delivery on Friday within the Comex-approved depositories.  The link to yesterday’s Issuers and Stoppers Report is here.

There was a minor addition to GLD yesterday, as an authorized participant added 9,686 troy ounces of gold.  There were no reported changes in SLV.

The U.S. Mint had another sales report.  They sold 11,500 ounces of gold eagles…500 one-ounce 24K gold buffaloes…and 28,000 silver eagles.

It was a big day over at the Comex-approved depositories on Tuesday.  They reported receiving a chunky 1,834,793 troy ounces of silver…and shipped out only 108,091 ounces of the stuff.  The link to that activity is here.  That 1.83 million troy ounces represents almost a full day of world-wide silver production.

Here’s an interesting photo that reader that Mark O’Brien sent me yesterday.  The photo was taken on Big Major Spot Island in the Bahamas.  I thought Mark was having me on at first…but Google proved him right!  The pigs swim out into the ocean to get fed…and they fight with the birds for scraps.

I have a large number of stories today…and I hope you have the time to skim them all…and there are the usual must reads as well.

The unavoidable attention that will attach to the termination of the silver manipulation is also one of the main forces delaying the coming resolution. If ever there was a can that needed to be kicked down the road by important insiders, the sudden end to the silver manipulation is surely that can.

JPMorgan and the CME, as well as the various federal agencies involved, are dreading the resolution of the silver manipulation, probably as much as informed silver investors are cheering for it. In a nutshell, this is why it has taken so many years to put a wooden stake through the heart of the silver manipulation; those who should be ending it know that in its termination they will be exposed for not ending it sooner.

After all, there is a documented 25 year history of the CFTC being continuously alerted to the silver manipulation with the agency always rejecting the allegations. There’s no way any termination of the silver manipulation won’t be connected to the clear prior public warnings. No one rushes to their own funeral. Postponing the shame is particularly relevant in the case of many at the CFTC, as an oath of office was taken to protect the public and the public’s pleas for relief were ignored. – Silver analyst Ted Butler…05 December 2012 

Well, if you thought there were similarities between Tuesday and Wednesday’s price action in both gold and silver…you would be right about that.  JPMorgan et al really don’t care who is watching, as they know that they are above the law…at least for the moment.  As Chris Powell and Ned Naylor-Leyland stated in different news items…the press won’t touch this story…and until it becomes known in a very public way, nothing will happen.  But when it does, all hell will break loose as Ted Butler mentions in the above quote from yesterday.

The only unfortunate thing about yesterday’s price action was that none of it will be in tomorrow’s Commitment of Traders Report.  There certainly was more long liquidation by the technical funds on these lower prices…and more short covering by JPMorgan et al.  But just how much won’t be know until next Friday.

If JPMorgan Chase et al want to go the “Full Monty” on both gold and silver, we’re looking at a $40-50 futher decline in gold…and over two bucks in silver.  That’s if they’re going after the 200-day moving averages in both metals.  Here are the 1-year charts for both so you can see how far we might have go to the down side.

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(Click on image to enlarge)

But if you look back to last year at this time, it could get a lot worse.  But can they or will they?  I don’t know, I’m just thinking out loud.

In Far East trading on their Thursday, not a lot happened.  Both metals were down a bit going into the London open…and that hasn’t changed much now that London has been trading for about forty-five minutes.  Volumes are average…and the dollar index is up a hair.  And as I hit the ‘send’ button at 5:00 p.m. Eastern time, the dollar index is now down a hair…and both gold and silver have recouped a bit of their overnight loses.  Volumes are nothing special.  As always, most of the volume and price action will occur during the New York trading session.

See you tomorrow.

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