Gold, silver, the dollar, the HUI and the Dow all turned on a dime at precisely2:00 p.m. yesterday. There are no markets anymore… only interventions. Is a CFTC judge stacking the deck against investors? Indian traders bet big time on gold prices. John Embry speaks… and much more.

Gold didn’t do a whole heck of a lot in Far East trading during their Thursday… and that lack of enthusiasm continued through the first half of the London trading day.  However, about an hour before New York opened [half past lunchtime in London], the selling pressure began… and by 9:00 a.m. in New York, gold was down about fourteen bucks.

The gold price gained about ten dollars of that back going into the London p.m. gold fix at 10:00 a.m. Eastern time, before the really serious selling began.  Between the p.m. fix [gold’s high of the day at $1,347.80 spot] and gold’s low of the day in New York at 2:00 p.m. Eastern time, gold sold off $30… as the low of the day was reported as $1,317.10 spot.

The real action was in the only market that matters… and that’s the silver market.  Silver made an attempt to rally the moment that trading began on Thursday morning… but within an hour or so, the price got sold down to its Far East low of the day at 4:00 p.m. Hong Kong time… which also happened to be the open of the London market at 8:00 a.m. local time.

From there, silver gained about thirty cents up until that same half-past-lunchtime point in London that gold ran into.  On the way, the silver price made a couple of attempts to break out above $24/ounce… but ran into a wall of selling at both attempts.  The second attempt at 12:30 p.m. in London was much more forceful… and by 9:00 a.m. in New York, the 30 cent rise since the London open had been eliminated.

Then, like gold, the selling backed off and the silver price was up to it’s New York high [$24.03 spot] by 10:15 a.m. Eastern time.  Then, like gold, the selling began.  The selling stopped at 2:00 p.m… and that was silver’s low tick of the day at $23.04 spot.  From that point, silver gained back about 15 cents going into the New York close.


On Thursday, gold was down 1.52%, silver was down 3.22%, platinum down 0.53%… and palladium down 0.17%.  Any questions?

Did the dollar follow gold… or did gold follow the dollar?  There was little [net] activity in the dollar yesterday… but the biggest dollar move was between 10:00 a.m. and precisely 2:00 p.m. Eastern time.  During that period, the dollar rose a hair over 60 basis points… and gold got slammed for $30 at the same time.  It was the bullion banks hiding behind the skirts of a ‘dollar rally’ once again.


As was to be expected, the gold shares didn’t spend much time in positive territory yesterday.  As soon as the big sell-off/dollar rally began shortly after 10:00 a.m… that was all she wrote.  But, at precisely 2:00 p.m. Eastern time, the shares turned on a dime and marched higher… and the HUI finished well off its lows… down only 1.87%.  Funny how that works, isn’t it… gold, silver, the dollar, the HUI and the Dow all turned on a dime at precisely 2:00 p.m.

There are no markets anymore… only interventions.


The GLD took another small hit again yesterday.  This time 43,724 ounces were withdrawn.  There were no reported changes in SLV.  There was nothing from the U.S. Mint… and the Comex-approved depositories showed that they had a net increase of 287,925 ounces of silver on Wednesday.  The link to that action is here.

There are no markets anymore… only interventions.– Chris Powell, GATA

Well, Thursday was another day where JPMorgan et al were taking no prisoners.  They killed both metals behind the thinnest of dollar rallies that one can imagine.  Platinum and palladium barely budged.  But the positive news was in the precious metal stocks.  Even though gold got hit for about $30 [silver for 99 cents] intraday… the HUI just gave back what it gained in an $8 up-move on Wednesday… so look on the bright side.

Volume in both metals yesterday was immense… over 200,000 contracts in gold… and 75,000+ in silver.  I would assume that the open interest in both metals will have taken a tumble as the tech longs puke up their positions… and the bullion banks rush to cover, or go long themselves.  Unfortunately, we won’t see any of this until next Friday’s Commitment of Traders report.  Once again ‘da boyz’ timed it so that we have to wait until the following Friday before we can see what they were up to this week.  It was ever thus!

Talking about the COT report.  This week’s report [for positions held at the close of trading on Tuesday] will be posted at 3:30 p.m. Eastern time [sharp] this afternoon.  If you wish to check it out, the link is here.  I expect that most of Tuesday’s big down-day was not reported in a timely manner… so today’s COT report probably won’t tell us a lot, as all of the big action occurred after the cut-off.

Gold didn’t do a lot in Far East trading earlier today… and the silver price was far more volatile… but both were up slightly going into the London open at 8:00 a.m. local time… 3:00 a.m. Eastern.  Then the bullion banks went to work immediately… and it didn’t take them long to get to new lows for this move down.  Volume [as of 4:41 a.m. Eastern time] is already immense in both metals

I know that it’s hard to think about buying stocks at a time like this… but when the selling is finally all over, it will be another huge buying opportunity.  In my opinion you should make your preparations ahead of time, so you’ll be ready when the bottom is in… and the first place I’d start would be with a subscription to either Casey’s Gold and Resource Report… or Casey Research‘s flagship publication… the International Speculator. Please click on the links, as it costs nothing to check them out… and the subscriptions come complete with CR‘s usual money-back guarantee.

Well, ‘da boyz’ are certainly serious in London.  I’m only guessing, but I’d say that it could be a fairly ugly day in New York when the Comex opens at 8:20 a.m. Eastern time.

See you on Saturday.

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