Except for the obvious in both platinum and palladium
The gold price was under a bit of selling pressure in Far East trading on their Wednesday—and the low of the day came shortly after 9 a.m. in London. From there it rallied quietly, but unsteadily for the remainder of the day, closing almost on its high tick. And I did note that the tiny rally that began at the 8:20 a.m. EDT Comex open wasn't allowed to get far.
The low and high were recorded by the CME as $1,266.50 and $1,279.20 in the August contract.
Gold closed in New York on Wednesday at $1,277.50 spot, up $5.80 from Tuesday's close. Volume, net of June and July, was a relatively quiet 89,000 contracts.
Silver also got sold down a bit in Far East trading—and it's low came shortly before noon Hong Kong time. From there, the price didn't do much until the Comex open—and it rallied very quietly for the remainder of the day, also closing almost on its high tick as well.
The low and high in the July delivery month were $19.665 and $19.92.
Silver closed yesterday at $19.90 spot, up 14 cents from Tuesday. Net volume was 31,500 contracts, about 2,500 contracts more than on Tuesday.
As I mentioned in The Wrap yesterday, the big spikes in both metals at the Zurich open got crushed—and neither metal did much after that—and every rally attempt in palladium got turned aside—and there were quite a few. Platinum closed up 9 bucks—and palladium finished the day up 8 bucks. Here are the charts.
The dollar index closed late on Tuesday afternoon in New York at 80.60. It ticked to its 80.64 high at the London open—and began to slide from there. That downward movement accelerated a bit once the FOMC minutes were announces. The 80.37 low came a few minutes before 5 p.m EDT—and the index closed on Wednesday at 80.40—down 20 basis points from Tuesday.
The gold stocks started off the Wednesday trading session unchanged, but then rallied about a percent or so by 10:30 a.m. EDT. They traded mostly sideways until the smoke went up the FOMC chimney at 2 p.m.—and from there they rallied into the close, with the HUI finishing the day on its high tick, up 2.48%.
The chart pattern in the silver equities had approximately the same shape, however the rally going into the 2 p.m. FOMC news wasn't quite as strong as gold's, but made up for it once the minutes were digested by all and sundry. The silver shares rallied quite strongly into the close—and Nick Laird's Intraday Silver Sentiment Index closed up 2.23%.
The CME Daily Delivery Report showed that 102 gold and 4 silver contracts were posted for delivery within the Comex-approved depositories on Friday. For the second day in a row it was Morgan Stanley as the biggest short/issuer, this time with 100 contracts even. They posted 200 contracts for delivery in the Tuesday report. JPMorgan in its client account, Barclays and Deutsche Bank were the three largest stoppers with 50, 24 and 23 contracts respectively. The link to yesterday's Issuers and Stoppers Report is here.
There were no reported changes in GLD—and as of 9:22 p.m. EDT yesterday evening, there were no reported changes in SLV, either.
The U.S. Mint did not have a sales report.
There was some movement in gold over at the Comex-approved depositories on Tuesday. They reported receiving 3,215 troy ounces of the stuff—and shipped out 20,421 troy ounces. The link to that activity is here.
There was more decent in/out movement in silver, as 336,174 troy ounces were shipped in—and 345,886 troy ounces were shipped out the door. The link to that activity is here.
For a change, there wasn't much price/volume impact on gold when word came down from on high after the FOMC meeting was over. Here's the 1-minute tick chart, with the volume data at the bottom. The time scale is set for Mountain Daylight Time—and that's why the price/volume activity begins where it does. I thank reader Brad Robertson for sending this chart our way.
I have a large number of stories again today and, as always, the final edit is yours.
Updating since Saturday’s review, one surprise was the withdrawal on Tuesday of nearly 2 million oz from the big silver ETF, SLV. Based upon trading volume and the upturn in silver prices last week, I had expected a deposit of as much as 2 million oz instead; therefore, an explanation is in order. Since net selling in SLV is quite unlikely on advancing prices, the most plausible explanation for the withdrawal is that shares were converted to metal and the metal was shipped out of the trust to somewhere it was more needed.
Confirming what can only be called tightness in the wholesale physical silver trade has been the continued heavy turnover in the COMEX-approved silver warehouses this week. For the first two days of the week, close to 2.5 million oz have moved in and out from the warehouses. The continued rapid movement of physical metal into and out from the COMEX silver warehouses is aligned with the surprising withdrawal from SLV as pointing towards physical silver tightness. – Silver analyst Ted Butler: 18 June 2014
Although both silver and gold rallied a bit yesterday, it was a very subdued trading day, as volume's weren't that high, especially in gold. I'm not prepared to read a thing into yesterday's price action—except for the obvious in both platinum and palladium, but since I covered that in The Wrap yesterday, I shan't repeat myself here.
As I do every day, here are the 6-month chart for both gold and silver—and the moving averages are still the 20 and 50-day in both metals.
In gold, the price still hasn't been allowed to break above the 50-day moving average—and it's far from being overbought. The 200-day moving average [not shown] is only five bucks above the 50-day m.a.
Silver is approaching the overbought mark, but the 200-day moving average [not shown] is at $20.51—and as you can see from the chart, JPMorgan et al haven't allowed silver to close any more than a few cents above the $20 spot price since mid-March, so the 200-day moving average may be a “bridge too far” at the moment. But I'd love to be proven wrong.
And as I write this paragraph, the London open is 15 minutes away. Gold and silver have a positive bias at the moment—and all four precious metals are up small amounts from their New York close on Wednesday. Gold volume is a bit above 14,000 contracts—and silver's net volume is about 5,500 contracts. These aren't big numbers for this time of day, but they're certainly higher than they were at this point yesterday morning. The dollar index, which had been working its way quietly lower during the Far East trading session on their Thursday, took a bit of a header around 2 p.m. Hong Kong time—and is currently down 15 basis points.
And as I hit the send button on today's column at 5:05 a.m. EDT, I note that the tiny rallies in gold, silver and platinum going into the London open got sold down shortly afterwards. All four precious metals are either at, or slightly above yesterday's closing prices in New York—and volumes are about 'normal' for this time of day. The dollar index is now down 24 basis points.
That's all I have for today—and I'll be more than interested in looking at the New York price action when I get out of bed later this morning.
See you tomorrow.
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I took this photo of a Rufous Hummingbird a bit over two weeks ago in Vancouver. Trying to get these tiny creatures to stay still long enough so you can lock focus on them is an unbelievable challenge. So I throw myself prostrate in awe at the feet of photographers that can turn out hummingbird photos like this one.