There are forces in motion under the surface that indicate a paradigm shift in prices and sentiment is coming.
Most of gold’s price gain was in by around 9:30 a.m. BST in London…and it pretty much traded sideways from there, before getting sold off a bit as the day wore on in New York. The high tick [$1,719.20 spot] came shortly after 10:30 a.m. Eastern time.
Gold closed at $1,710.30 spot…up $8.80 from Wednesday. Volume was pretty decent…around 174,000 contracts.
It was pretty much the same story in silver, with most of the day’s gains in by 10:00 a.m. in London…with the New York high tick [$32.35 spot] printing around 11:00 a.m. Eastern.
Like gold, silver got gradually sold down once the high was in…but rallied back as the day wore on…and then moved sideways after 3:00 p.m. in electronic trading.
Silver finished the Thursday session at $32.11 spot…up 38 cents on the day. Volume was around 41,500 contracts.
The dollar index opened at 79.96 in Tokyo on their Thursday morning…and began to slide from there, with its nadir [79.71] coming at mid-morning in London. From that point it began to rally…hitting its zenith of 80.13 at 4:30 p.m. in New York…before sideways into the close. The dollar index finishing the Thursday trading session above 80.00 at 80.04…up about 8 basis points. It’s taken a month full of attempts to finally close above the magic 80.00 mark.
Gold and silver rallied until the bottom was in for the dollar index…and despite the 33 basis point rally from that point, the precious metals traded mostly sideways from there…a pretty decent showing, all things considered.
It will be more than interesting to see if the dollar index can build on those gains going forward. As it is, it’s hanging onto the 80 mark by its proverbial fingernails as I write this.
The gold stocks gapped up about 3 percent at the open…and held those gains for the rest of the day. The HUI finished up 3.21%.
The silver stocks put in a pretty decent performance as well…and Nick Laird’s Silver Sentiment Index closed up 3.53%. One thing well worth noting on this chart, is just how well the silver stocks are holding up again the engineered price decline in the metal itself. The SSI is trading sideways even though the silver price is down over three bucks off its early October highs. I suspect that this is deep-pocket smart money buying the dip.
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The CME’s Daily Delivery Report was another yawner, as only 2 gold and 2 silver contracts were posted for delivery on Monday.
There were no reported changes in GLD yesterday…but an authorized participant added a smallish 145,245 troy ounces of silver to SLV.
There was no sales report from the U.S. Mint.
The Comex-approved depositories reported receiving 606,932 ounces of silver…and shipped only 20,867 troy ounces out the door. The link to that activity is here.
Here are three charts courtesy of Nick Laird…and they’re all inter-related. The first one is the Intraday Average Gold Price Movement for the month of September…next is the same chart except it’s a 12 month rolling average…and the last one is the 5-year rolling average…a chart similar to the one that I posted many times in this column.
It’s very easy to see how the price patterns have changed over time. The current price trading pattern is totally unrecognizable from what it was five years prior…or even twelve months ago. The London bias that I [and others] have spoken of at length over the last year or so, has vanished completely. I guess it was becoming too conspicuous.
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I don’t have a lot of stories today, so I hope you have time to read the ones that interest you the most.
If you have been voting for politicians who promise to give you goodies at someone else’s expense, then you have no right to complain when they take your money and give it to someone else, including themselves. – Thomas Sowell
I’m not prepared to read too much into yesterday’s price action. We’re still churning around at these price levels…and nothing has been resolved as far as the short positions held by JPMorgan Chase et al. But I must admit that I was happy to see the positive price action in the precious metals shares yesterday…as they have not confirmed the current sell-off in the metals themselves. Although declining for the most part, they are quick to rebound on any perceived price break-out to the upside. It certainly appears, at least to me, that the shares are disappearing into strong hands at this point…especially the silver equities.
Today we get the Commitment of Traders Report for positions held at the 1:30 p.m. Comex close on Tuesday. Although I’m expecting big improvements in the Commercial net short positions in both metals…we are still miles away from being near a capitulation to the downside. Maybe it won’t happen this time around…but who really knows? Not I, that’s for sure.
For the moment, it appears that “da boyz” still have a firm grip on all precious metal prices…but I still see a spike down in the near future. But after that, all bets are off…because as I said yesterday, I highly suspect that there are forces in motion under the surface that indicate a paradigm shift in prices and sentiment is coming.
Both gold and silver traded sideways until 10:00 a.m. Hong Kong time on their Friday…and at that point, some selling pressure showed up which lasted until shortly after 3:00 p.m…less than an hour before the London open. Since then, the price of both metals have traded more or less sideways…although silver is off that low by a bit. The dollar index is still hanging in there…barely above the 80.00 mark. Volumes in both are a bit higher than normal for this time of day…and as I hit the ‘send’ button at 5:15 a.m. Eastern time, gold is hovering just above the $1,700 spot price mark…down about six bucks from Thursday’s close in New York. Silver is down a bit over 40 cents.
And as I head out the door, I’d like to remind you that there’s still an opportunity to either readjust your portfolio, or get fully invested in the continuing major up-leg of this bull market in both silver and gold…and I respectfully suggest that you take out a trial subscription to either Casey Research‘s International Speculator [junior gold and silver exploration companies], or BIG GOLD [large producers], with all our best [and current] recommendations…as well as the archives. Don’t forget that our 90-day guarantee of satisfaction is in effect for both publications.
It will be interesting to see what New York trading holds in store for us today. If I had to bet a dollar, it would take me a while to decide whether I’d bet on up…or down. We’ll find out soon enough.
Enjoy your weekend…or what’s left of it if you live west of the International Date Line…and I’ll see you here tomorrow.
Drilling Intersects 102 Meters of 1.97 gpt Gold at Columbus Gold’s Paul Isnard Gold Project; Drilling Confirms Depth Extension of Gold Mineralization
Columbus Gold Corporation (CGT: TSX-V) (“Columbus Gold”) is pleased to announce results of the initial five (5) core drill holes at its Paul Isnard gold project in French Guiana. The holes confirm depth extension of gold mineralization below shallow holes drilled on the 43-101 compliant 1.9 million ounce Montagne d’Or inferred gold deposit at Paul Isnard in the 1990’s and support the current program of resource expansion through offsetting open-ended gold mineralization indicated by the earlier holes.
Robert Giustra, CEO of Columbus Gold, commented: “These drill results validate Columbus Gold’s approach to adding ounces with a lower-risk drilling program designed to infill and to extend the mineralized zones to 200 m vertical depth from surface; a depth amenable to open pit mining.”
Fourteen (14) holes have been completed (assays pending) by Columbus Gold in the current program and drilling is progressing at the rate of about 3,000 meters per month with one drill-rig on a 24 hour basis. Columbus Gold plans to accelerate the current program by engaging a second drill-rig as soon as one can be obtained.
Please visit our website for more information about the project.