I suspect that the “stabilization of the financial markets” by the central banks on Sunday night will include the precious metals.
It was another yawner of a trading session in the Far East and for most of the London trading day on Thursday.
Of course that all changed at the Comex open, as gold tacked on a quick nine bucks, reaching its high of the day of $1,629.20 spot about 8:40 a.m. From there it got sold off a hair…and at the open of the New York equity markets, just like on Monday at 9:30 a.m. Eastern time, someone pulled the pin…and gold was down sixteen dollars in less than five minutes. The low for the day came at that instant…which was $1,608.80 spot.
Gold recovered from there…and finished at $1,623.30 spot…up $5.70 on the day. Net volume was fairly hefty at 142,000 contracts.
Of course it was the silver price action that was the standout yesterday. After making numerous attempts to break through, and then stay above, the $29 spot price…it made one more attempt just minutes after 8:30 a.m. Eastern time in New York…and that attempt was met by another not-for-profit seller. Then at 9:30 a.m…the high-frequency traders showed up…and in less than five minutes, silver had crashed 80 cents…about 2.75%.
And there wasn’t a shred of news that would have caused that. A more blatant in-your-face market intervention can scarcely be imagined. The executives and boards of directors of all the silver companies that you own shares in will do what they usually do as they and their shareholders get raped…absolutely nothing. Not a single voice will be raised in our defense. The CME and the CFTC will do nothing as well. One has to wonder what sort of evidence the CFTC is looking for in this almost four year old silver manipulation investigation. I’m not sure either, but I think I found some yesterday. If Bart Chilton calls me, I’ll point it out to him.
The high price tick at 8:33 a.m. Eastern time was $29.13 spot…and the low price tick at 9:37 a.m. Eastern time was $28.13 spot
Silver recovered a bit from there…but still closed down 22 cents at $28.64 spot. Net volume was in the neighbourhood of 34,000 contracts.
Platinum got hit for about ten bucks at the same 9:30 a.m. time…and the palladium price was barely affected. As a matter of fact, platinum finished up 1.85%…and palladium closed on Thursday up 2.27%. Gold was up 0.35%…and silver finished down 0.76%. This was a silver-specific bear raid yesterday.
The dollar index, which opened around the 82.13 level, hit its zenith [82.28] at 10:00 a.m. in London and, like Wednesday, it was all down hill from there. The dollar index closed at 81.85…down about 28 basis points…and almost on its low of the day.
It almost goes without saying that there was nothing in the dollar index activity that explained the waterfall decline in silver and gold at 9:30 a.m. Eastern time.
Of course the gold stocks got sold off the moment that the New York equity markets opened…and they hit their low just minutes after that. They recovered strongly from there before chopping around with the price of the metal itself…and the HUI managed to finish with another small gain, up 0.32% on the day.
The silver stocks finished mixed…but mostly down…and Nick Laird’s Silver Sentiment Index closed up a tiny 0.16%, which isn’t too shabby considering how badly the metal itself got hit.
(Click on image to enlarge)
The CME’s Daily Delivery Report showed that 15 gold and 4 silver contracts were posted for delivery on Monday.
The GLD ETF showed that an authorized participant[s] added a fairly chunky 97,049 ounce of gold yesterday…and there were no reported changes in SLV.
The U.S Mint reported selling 40,000 silver eagles.
Over at the Comex-approved depositories on Wednesday, they reported receiving 1,225,308 troy ounces of silver…and shipped a very tiny 6,606 ounces out the door. The link to that action is here.
I have a lot of stories for you again today…and I hope you have the time to at least skim the ‘cut and paste’ of each one. There are only a small handful that fall into the must read category.
Whatever monetary regime succeeds the current dollar reserve system will involve a significant and permanent re-pricing of gold. – John Hathaway, 13 June 2012
It was another 9:30 a.m. Eastern time smack-down…the second one this week, with the first occurring on Monday. I shan’t bother posting the applicable price charts to prove my point again today, as you can just go into the archives on this web page and pull up Tuesday and Wednesday’s columns. The applicable charts are in ‘The Wrap’ section.
As Chris Powell prophetically pointed out at GATA’s conference in Washington some years back…”There are no markets anymore, only interventions“…and to prove that point, the world’s central banks, along with the President’s Working Group on Financial Markets [which includes CFTC Chairman Gary Gensler, as Ted Butler pointed out on Wednesday] will be at the ready when trading begins on Sunday night at 6:00 p.m. New York time. If you doubt that, here’s the link to the applicable story further up in this column. I suspect that the “stabilization of the financial markets” by the central banks on Sunday night will include the precious metals.
Today, at 3:30 p.m. Eastern time sharp, we get the latest Commitment of Traders Report from the CFTC…and I haven’t the foggiest idea of what to expect. A cursory glance at the gold and silver price charts during the reporting period suggests that we may see a decline in JPMorgan et al’s short position, but I wouldn’t bet the ranch on that.
Whatever it shows, it will be a talking point in this column tomorrow.
The gold price didn’t do much in Far East trading on their Friday, but it did pop a few dollars at the London open…and then immediately got sold down to unchanged…and it was the same for the silver price. Net volume in both metals, particularly in gold, is the lightest it has been all week at this time of day…and the dollar index is down a hair as I hit the ‘send’ button at 5:05 a.m. Eastern time.
With elections in both Greece and Egypt this weekend, it could be an interesting day in the markets in both Europe and North America…and I’ll be more than interested in the precious metals price ‘action’ when the Comex begins to trade at 8:20 a.m. in New York this morning.
There’s still the 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 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.
Have a good weekend…and I’ll see you here on Saturday…but make that Sunday if you’re just west of the International Date Line.
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Drilling earlier in the year encountered long intervals of high-grade silver and copper near surface in five of eight holes, as well as significant gold intercepts, such as 44.2 m of 71.0 g/t Silver, 0.15 g/t Gold and 1.14% Copper. Further assay results and soil geochemistry are expected in February/March 2012. Permitting is underway for an extensive Phase III delineation drill program at Desoto to begin in the spring of 2012.