Well, here we sit once again. Everything is just as bad, if not worse than it was on Friday.
Gold ticked higher right at the 6:00 p.m. Sunday night open…but that lasted less than a minute before the high-frequency traders showed up…and had gold down about a percent in less than an hour.
The price recovered strongly from there, but remained below Friday’s closing price for the balance of Far East and early London trading.
The New York low came at the London p.m. fix at 10:00 a.m. in New York…and the subsequent rally got stepped on at 11:30 a.m. Eastern right on the button…and the gold price more or less traded sideways from there.
The 11:30 a.m. New York high was $1,631.20 spot…and the low at the fix was $1,612.90 spot. Of course the intraday trading range was slightly bigger than that.
Gold closed the Monday trading session at $1,628.70 spot…up $2.00 on the day. Net volume was reasonably light at 114,000 contracts…but would have been much lower except for the fact that it was five to ten times normal in the first hour or so of Far East trading on Sunday night.
Here’s the New York Spot Gold [Bid] chart on its own…as the 11:30 a.m. New York high price spike doesn’t even register on the Kitco 24-hour chart. But it shows up clearly below.
Of course the silver price was more ‘volatile’ at the open on Sunday night in New York, as the price blasted through $29 spot like a hot knife through soft butter. But as you already know, the not-for-profit sellers were waiting…and had the price down almost seventy cents within an hour or so of its spike high.
Silver quickly recovered, but only made it back above Friday’s closing price for a few minutes before it was taken lower…and continued lower right up until the absolute low tick of the day [$28.21 spot] which came at about 8:40 a.m. in New York, about twenty minutes after the Comex opened.
Silver rallied in fits and starts from there, with the high price tick of the day [$28.96 spot] appearing to come about 11:50 a.m. Eastern time. From there, it got sold down a bit before trading sideways into the 5:15 p.m. close.
Once again, silver wasn’t allowed to close above the $29 spot price market and finished at $28.74…unchanged from Friday’s close. Net volume was 29,000 contracts, with over ten percent of that coming in the first couple of hours of trading.
Based on the price action…and the huge associated volume…it’s a no-brainer to see that JPMorgan et al were very active at the Sunday night open in New York…and then again before lunch in New York.
To give you an idea of the volume numbers, after about ninety minutes of trading on Sunday night, gold volume was around 7,500 contracts…and silver’s net volume was just over 3,000. On Monday night [last night] after four hours of trading, gold volume was around 4,500 contracts…and silver’s net volume hadn’t reached 700 contracts.
The dollar index dropped a bit over 40 basis points like the proverbial rock at the open…and then recovered unsteadily from there…hitting its Monday high [82.07] a few minutes before 1:00 p.m. Eastern time.. From there it rolled over a bit into the close…finishing the day around 81.93.
From its absolute low, to its absolute high, the dollar index gained about 90 basis points…but only finished up about 35 basis points from Friday’s close. If you can find any correlation between the dollar index and the gold and silver price, I’d love to hear from you.
The gold stocks gapped down over a percent at the open…hit their lows of the day at the London p.m. gold fix…and then turned on a dime. The high price tick of the day came shortly after 2:30 p.m. Eastern time…and then got sold off a hair into the close. The HUI finished up 1.60%.
The silver stocks put in a respectable performance as well…and Nick Laird’s Silver Sentiment Index closed up 1.82%.
(Click on image to enlarge)
The CME’s Daily Delivery Report showed that 44 gold and 3 silver contracts were posted for delivery on Wednesday. Nothing to see here.
But there was lots of activity over at both GLD and SLV yesterday. GLD reported that an authorized participant added 135,864 ounces of gold…and a chunky 1,940,108 troy ounces of silver were added to SLV. Both those numbers are pretty impressive, actually.
There was no sales report from the U.S. Mint.
As I mentioned on Saturday, there was no report for Thursday from the Comex-approved depositories in any metal…and if they posted that information on their website anytime yesterday morning, I didn’t catch it. But they did provide the update for Friday. They took in 256,868 troy ounces of silver…and shipped out 787,173 ounces of the stuff. The link to that activity is here.
As you know, I’ve never been a big fan of SLV or GLD…but I ran across something in Ted Butler’s weekend commentary which caused me to change my mind. The website is aboutag.com…and the webpage in question is entitled “Silver ETF [SLV] Bar List Analysis“. When you bring up that page, then you click on the ‘Date/Link’ of your choice on the left hand side…the current date is as of 13 June 2012…and there is more data on that page than you’ll ever want to know. I was totally blown away. Just judging by the quality and breakdown of the data alone, I’d say that SLV is legit. I can’t guarantee that, of course, but I was impressed to pieces…and if there’s a similar site that tracks GLD, it is unknown to me at the moment.
But having said all that, I still wouldn’t own this fund for the simple reason the custodian of record is JPMorgan. Since they and their minions have a license to rig silver prices with impunity, there are other choices as far as physical metal funds go…and I’ve made mine. For me, it’s a matter of principle, as I still have some.
Reader Scott Pluschau has posted a short blog on his website entitled “Gold is on the doorstep of a major multipoint trendline”…and the link is here.
With all eyes on Greece in particular…and Europe in general…almost all of today’s stories, come from the other side of the Atlantic ocean. I have a lot, so the final edit is up to you once again.
There is of course no guarantee that this proposed European Redemption Pact will ever get off the ground. But in the longer-term, something resembling it is going to have to be introduced if the world does not want to see its present monetary system implode completely. It is the first CONCRETE evidence that Europe, and Germany in particular, is starting to seriously think about the inevitable necessity of re-introducing Gold as MONEY. – Bill Buckler, Gold This Week…16 June 2012
Well, here we sit once again. Everything is just as bad, if not worse than it was on Friday. The old cartoon with the bearded old man walking around with the sign “The End is Nigh” is very apropos right now…as that is precisely where we are.
Nothing will come from the G20 meeting in Los Cabos…and nothing from the FOMC meeting that begins today. The only answer they have is the printing press. It’s “Print, or die”, which sooner or later ends up being “Print, and die.” There is a limit to how far they can kick this can down the road…because sooner or later there just isn’t any road left…and that’s pretty much where we are at this point in time. And it doesn’t matter what the ‘powers that be’ do from hereon in either financially or monetarily…because if it doesn’t involve gold in some way, shape, or form at some point…they are done for and they know it.
Neither gold nor silver did much in Far East trading during their Tuesday. Both metals popped a bit at the London open, but those rallies were put in their place almost immediately. I’m only guessing, but I’d say that all the precious metals are being held on a pretty tight leash at the moment. As of 5:10 a.m. Eastern time, volume is pretty light in both metals…and the dollar index isn’t doing much.
I’m only guessing, but whatever significant price action we do have today will most likely occur during the Comex trading session in New York because, as Ted Butler says, it’s the only market that matters.
See you tomorrow.
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