Yesterday was another prime example of the bullion banks running the gold and silver price show, as it certainly had nothing to do with the U.S dollar.
The gold price started off on Sunday night the way it normally has for the past several months…rising sharply. Within thirty minutes, a not-for-profit seller showed up and had it sold back down to unchanged in a little over an hour.
From there, the gold price behaved itself until the London a.m. gold fix which came shortly after 10:30 a.m. in London. From there it got sold off to its London low, which came a few minutes after 1:00 p.m. local time…8:00 a.m. in New York.
The price then rose into the London p.m. gold fix at precisely 10:00 a.m. Eastern time…and after a tiny double top…that, as they say, was that. The New York low was set about 2:10 p.m. Eastern time in the thinly-traded New York Access Market…and from there traded sideways into the 5:15 p.m. close.
The gold price closed at $1,723.20 spot…down $22.10 on the day. Volume was around 124,000 contracts.
Silver started the same way as gold in Sunday night trading in New York…a sharp rise getting sold off. Silver didn’t do much after that. It’s New York high was also precisely at 10:00 a.m. Eastern time…3:00 p.m. in London…right at the p.m. gold fix.
Then at 10:30 a.m. Eastern…after a tiny double top…JPMorgan et al showed up.
Silver which, up to that point, had spent most of the Comex trading session in the black…closed at $32.08 spot…down 56 cents on the day. Silver’s low tick [$31.79 spot] came at 3:30 p.m. Eastern time right on the button. Volume was 32,000 contracts…give or take.
The dollar fell about 60 basis points between 1:00 and 10:30 a.m. Eastern time on Monday morning…and then rose sharply, gaining everything back by the close of trading, finishing basically unchanged on the day.
You will carefully note that neither gold nor silver gained a penny while the dollar was falling 60 basis points…but turned in all their losses when the dollar rallied 60 basis points starting at 10:30 a.m. Eastern time.
You would be correct if you thought that it doesn’t pass the smell test.
The gold stocks peaked about 10:45 a.m. in New York…and then slid into the close…but did not close on their lows. The HUI only finished down 0.76% on the day…a fact which I found encouraging.
It was pretty much the same for silver stocks…and Nick Laird’s Silver Sentiment Index was only down 0.48%.
(Click on image to enlarge)
Yesterday’s Daily Delivery Report from the CME showed that 358 gold, along with zero silver contracts, were posted for delivery on Wednesday. It was all the usual suspects as shorts/issuers and longs/stoppers.
The first five delivery days in December showed that 54.3 tonnes of gold has been issued for delivery by the shorts…and accepted by the longs. The shorts always deliver to the longs. The shorts are ‘Issuers’…and the longs are ‘Stoppers’…that’s the jargon of the trade. None of this gold left the exchange…it’s just changing owners…and rack space over at the Comex. Yesterday’s Issuers and Stoppers Report is worth skimming…and the link is here.
The various Comex warehouses would look something like this photo…which, I’ve been told, is a photo either of the LME vault or the Bank of England.
There were no reported changes in either GLD or SLV yesterday.
But that certainly wasn’t the case at the U.S. Mint yesterday. They reported selling 7,000 ounces of gold eagles…6,000 one-ounce 24K gold buffaloes…and 806,000 silver eagles. Those silver eagle sales represent 58% of all the silver eagles sold in November, so December will be a vast improvement over November.
On Friday, the Comex-approved depositories received 300,052 troy ounces of silver…and shipped 39,678 ounces of the stuff out the door. The link to that action is here.
Silver analyst Ted Butler posted a lengthy weekly review on the weekend…and here are a couple of free paragraphs…
It’s no secret that I hold the Trust’s sponsor, BlackRock, as being responsible for ensuring that the short position in SLV comes down. They have a fiduciary responsibility to protect SLV shareholders’ interests. Allowing an enormous short position to exist in SLV is most definitely not in SLV shareholders’ best interest. Anyone shorting shares in SLV does not deposit silver to back those shares…and more than 7% of current shareholders do not have metal backing on their shares owned. This is fraudulent to SLV shareholders. The reason it is also manipulation is that by not securing and depositing the 24 million ounces in real metal, the SLV shorts are contributing to the artificially depression of the silver price.
[There are] two key things to watch on the next silver rally of five or ten dollars or more…the concentrated short position of JPMorgan in COMEX silver futures…and the short position in shares of SLV. If either grows significantly, that will be a clear-cut sign that the silver manipulation lives [on].
Here’s an interesting graph that Washington state reader S.A. sent me yesterday. The comments imbedded in the graph tells you all you need to know.
Since it’s Tuesday, I have lots of stories for you today…and the final edit is up to you.
Yesterday was another prime example of the bullion banks running the gold and silver price show, as it certainly had nothing to do with the U.S dollar…and the news everywhere was just as terrible on Monday as it was on Friday.
The only silver lining to this is that the Commercial net short position in both metals will certainly show more declines when Friday’s Commitment of Traders Report is posted on the CFTC’s website.
Here’s the 6-month chart for silver. You can see that ‘da boyz’ are keeping the silver price below its 50-day moving average so that the technical funds don’t come back in on the long side, which is what they’ll do the moment that silver breaks that moving average with any kind of authority.
(Click on image to enlarge)
I note that ‘da boyz’ have rolled the gold price over as well…and although the price is still above its 50-day moving average, the trend is down. The only question is, will they continue beating on gold until it does break through it to the downside? Here’s gold’s 6-month chart…
(Click on image to enlarge)
In Far East trading earlier today, gold trended a few dollars lower before ‘falling’ below the $1,710 spot price…but has since recovered almost back to yesterday’s closing price in New York…but is now tracking sideways about four bucks below that number. I will be watching the rest of today’s price action with great interest.
Silver’s price path was similar…with the spot low coming shortly before 2:00 p.m. Hong Kong time. The subsequent rally got sold off the moment it got to ‘exuberant’…and that came very shortly after London opened for trading…and it’s now down a bit from Monday’s New York close..
Gold volume [as of 5:18 a.m. Eastern time] was a bit over 25,000 contracts…and silver’s volume numbers are still not available. This has been going on for about a month now…and it’s obvious that this problem is not high on the CME’s ‘to fix’ list.
Today is the cut-off for Friday’s COT report…and it will be interesting to watch whether JPMorgan et al take silver and gold prices lower, or let them run a bit. That’s why I’m particularly interested in how Tuesday’s price ‘action’ evolves as the day wears on.
See you tomorrow.
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