Free markets in the four precious metals just don’t exist, at least not at the moment.
It was pretty much of a yawner as far as gold price activity went yesterday, as the price traded in a tight range. The gold price declined about five bucks in early Far East trading…and then pretty much traded five dollars either side of that price for the next eleven hours.
The low of the day came about ten minutes before the Comex opened in New York…and the subsequent rally came to an abrupt end at the London p.m. gold fix, which came about 9:50 a.m. Eastern. The fix was also the high on Tuesday.
From there, gold got sold off and retested the prior low before recovering somewhat into the close of electronic trading in New York at 5:15 p.m.
The gold price closed at $1,721.10 spot…down a whole 80 cents on the day. Net volume was pretty decent at around 129,000 contracts.
Silver’s price path was virtually identical to gold’s…right down to the minute…although the price was more ‘volatile’. Although it appears from the Kitco chart below, that silver’s absolute low came a few minutes before the Comex close at 1:30 p.m. in New York…the 7:10 a.m. low was the same…almost to the penny.
Silver closed at $33.58 spot…down 14 cents on the day. Net volume was in the area of 30,000 contracts.
Here’s the New York Spot Silver [Bid] chart. Here you can see the two lows were clearly the same…a detail that’s not obvious on the 24-hour chart.
The price path of the dollar index was mostly up. Starting in New York on Monday evening, the index rose a bit over 30 basis points…topping out at 3:00 p.m. Hong Kong time, before rolling over and giving back all that gain [and a bit more] by shortly before 11:00 a.m. in London about four hours later.
After that, it was mostly onwards and upwards…and the rally topped out at 2:30 p.m. in New York. From the London low to the New York high, the dollar index rose about 65 basis points. But once the top was in at 2:30 p.m….the index rolled over and the dollar gave back about 25 points of that gain…closing the trading day at 79.41…up about 40 points from Monday’s close.
Even though the gold price was in rally mode…and in positive territory when the equity markets opened…the gold stocks ran into selling pressure right away. The two low dips corresponded exactly with the two low dips in the gold price during the New York trading session…and the sharp rally in the last thirty minutes of trading shaved a full percentage point off of the day’s losses. The HUI finished down 1.16%.
With the odd exception, the silver stocks finished in the red across the board as well…and Nick Laird’s Silver Sentiment Index closed down 1.50%.
(Click on image to enlarge)
It’s been a while since the CME Daily Delivery Report showed no activity in both gold and silver…but that’s exactly what happened on Tuesday. The only deliveries were in copper…and there weren’t many of them.
There were withdrawals from both GLD and SLV yesterday. GLD had a smallish 12,358 troy ounces removed…which might have been a fee payment of some kind. Over at SLV, a rather chunky 1,068,890 ounces of silver were withdrawn.
For the second day in a row, the U.S. Mint had no sales to report.
Over at the Comex-approved depositories on Monday, they reported receiving 1,197,273 ounces of silver…and shipped 865,076 ounces out the door. The link to that action is here.
Yesterday Ted Butler mentioned the fact that the short position in SLV had declined 35.4%…I forgot to mention that the short position in GLD had also declined over the same period. The short position in GLD fell from 19.60 million ounces to 17.28 million ounces…a decline of 11.9%. It’s a step in the right direction. I hope there are lots more steps like that in the months ahead.
While on the subject of silver…here’s the Year-to-Date Performance for all commodities. It’s provided by the good folks over at the finviz.com website. There are no surprises here.
(Click on image to enlarge)
Here’s one more chart. This was sent to me by Washington state reader S.A. yesterday.
After yesterday’s barrage of stories, I have a lot fewer today.
The difference between winning and losing is most often not quitting. – Walt Disney
Gold and silver prices weren’t allowed to do much yesterday. Despite the rising dollar, they certainly showed signs that they wanted to take off, but every rally attempt ran into resistance.
Other than that, it was basically just another day of the calendar as Ted Butler would say…and we’ll just have to see which way this market is going to be allowed to go…as free markets in the four precious metals just don’t exist, at least not at the moment.
In overnight trading, gold didn’t do a lot…and was up about eight bucks at the London open but…as of 5:04 a.m. Eastern time…that was as high as it got. Silver is is up about 20 cents. And since the open in New York last night, the dollar index is down about 35 basis points. Volumes in both metals is a little lighter than it was at this point in time yesterday.
That’s all I have for today. See you on Thursday.
Columbus Gold Closes Transaction to Acquire Paul Isnard, 1.9 Million Inferred Oz. Gold Project; Plans Drilling
On June 30, 2011, Vancouver, Canada based, Columbus Gold (CGT: TSX-V) announced that it had closed its previously-announced transaction with Auplata SA, gaining the exclusive right to obtain up to a 100% interest in the Paul Isnard gold project in French Guiana, which includes the 43-101 compliant 1.9 million Inferred gold resource in the Montagne d’Or gold deposit. Columbus Gold now has fully satisfied the share issuances required to earn into the project, and can earn its initial 51% interest in the project by incurring $7 million in exploration expenditures, which it expects to complete by early 2012. Upon Columbus Gold earning a 51% interest in the project, it will have an option to increase its interest to 100% (subject to an underlying royalty) by completing a bankable feasibility study. Drilling is planned to commence in August 2011.
For additional information, please see Columbus Gold news release dated June 30, 2011, or contact the company at: