We’ve continued to trade mostly sideways in both metals
Except for the spike at 9 a.m. Hong Kong time that got hammered flat immediately, not a thing happened in the gold market on Tuesday anywhere on Planet Earth. And, once again, the highs and lows aren’t worth looking up.
Gold finished the Tuesday session in New York at $1,326.10 spot, down 80 cents from Monday. Net volume was 113,000 contracts—not exactly light. Considering the heavy volume already on the CME’s books at the London open, I would guess that a decent chunk of that was used to put that Hong Kong price spike in its place.
Silver did very little from a price perspective as well and, like gold, the high and low ticks aren’t worth the effort to look up. The metal spent most of the day just above the $21 spot price mark, but wasn’t allowed to close there.
Silver finished the Tuesday trading session at $20.975 spot, up 1.5 cents from its Monday close. Volume on Tuesday was even higher than Monday at 49,000 contracts.
Both platinum and palladium traded ruler flat until shortly after Zurich opened. Then both began to rally a little at that point, but really took off shortly before 2 p.m. Europe time—or 8 a.m. EDT. Just looking at their respective chart, it appears that their respective rallies were capped during New York trading—and both closed off their ‘highs’ of the day. Platinum closed up $22—and palladium was up $11. Both would obviously closed higher if they hadn’t run into a not-for-profit seller during the Comex trading session. Here are the charts.
The dollar index closed on Monday afternoon in New York at 79.78—and traded a tad higher in a very tight range for all of Tuesday. The index closed at 79.82. Nothing to see here, either.
The gold stocks opened in positive territory, but couldn’t hang on to their gains—and the sold off until shortly before lunch in New York. From there they chopped sideways into the close, as the HUI finished the Tuesday session down 0.99%.
The silver equities turned in a similar performance, as Nick Laird’s Intraday Silver Sentiment Index closed down 0.94%.
The CME Daily Delivery Report for Day 3 of the July delivery month showed that zero gold and only 35 silver contracts were posted for delivery within the Comex-approved depositories on Thursday. JPMorgan and Barclays took delivery of 33 of those contracts in their respective client accounts. The link to yesterday’s Issuers and Stoppers Report is here.
For the second day in a row there was a decent sized deposit in GLD, as an authorized participant added 182,881 troy ounces on Tuesday. So far this week, GLD has received around 370,000 troy ounces. And as of 10:45 p.m. EDT, there were no reported changes in SLV.
The U.S. Mint started off the July month with a tiny sales report. They sold 1,000 troy ounces of gold eagles—and 500 one-ounce 24K gold buffaloes.
There was no reported in/out movement in gold at the Comex-approved warehouses on Monday—and there was a decent amount of silver movement, as 717,986 troy ounces were reported shipped in, and 998 troy ounces were shipped out. The link to the silver activity is here.
I don’t have all that many stories today—and I’ll leave the final edit in your hands.
I find it incredible that so few commentators have even mentioned the documented physical COMEX silver turnover given how unusual and unprecedented it is. It’s almost as if these commentators have “blinders” on to avoid a circumstance that cries out for explanation. OK, I admit it – I’m just trying to rustle up an alternative explanation to the only plausible explanation I can come up with – the unprecedented turnover is a symptom of extreme physical tightness. Next, I suppose, I may resort to running a contest with an award or standing on a street corner with a poster, “will work for an explanation.” – Silver analyst Ted Butler: 28 June 2014
The first day of July, Canada Day in our country, was not much to look at from a price perspective for silver and gold, as they did nothing. The same cannot be said for platinum and palladium—and they would have done better, except for what appeared to be price capping during the Comex trading session.
Here, once again, are the 6-month gold and silver charts—and nothing has changed since the big rally of almost two weeks ago, as we’ve continued to trade mostly sideways in both metals since then.
And as I write this paragraph, London has been open about 25 minutes—and precisely nothing has happened from a price perspective in any of the four precious metals since trading began in the Far East on their Wednesday morning. As of right now they are all down small amounts from Tuesday’s close in New York. Volumes in both gold and silver are very light—about half of what they were this time yesterday—and the dollar index isn’t doing a thing.
Since Friday is Independence Day in the U.S., I would be very surprised if anything major happens in the precious metals either today or tomorrow, as the traders will be wanting to head out for the long weekend early, so expect trading volumes to slide starting right now. Of course there’s always room for a surprise—but if I had ten bucks, I’d bet on the former scenario.
And as I send this out the door at 4:25 a.m. EDT, I note that all four precious metals have developed slight positive biases, but nothing to hang one’s hat on. Gold and silver volumes, are higher of course, but still very much on the lighter side. The dollar index is up a small handful of basis points.
That’s it for today. I’m off to bed—and I’ll see you here tomorrow.