We seem to be in a holding pattern of sorts…losing ground in the London market…and then gaining it all back in New York, or vice versa.

The gold price was under light selling pressure during most of the Far East trading day on Wednesday…and this pressure intensified shortly before 10:00 a.m. in London…and the low of the day…$1,603.40 spot…came about 1:15 p.m. BST…or about five minutes before the 8:20 a.m. Eastern time Comex open.

From that low, the gold price tacked on a quick fifteen bucks by 9:40 a.m. Eastern time, which may or may not have been an early London p.m. gold fix.  But from that high tick…which was $1,617.90 spot…either the price got capped, or the buyer disappeared…and the gold price chopped lower into the 5:15 p.m. close of electronic trading in New York.

Net gold volume was ultra-light once again…around 91,000 contracts…and gold closed up 30 cents from Tuesday…and an even dollar from Monday’s close.  You have to wonder if a trader for JPMorgan et al is winning some sort of prize for getting those three days of closes so close together.

Silver’s price pattern was virtually the same as gold’s, but with more ‘volatility’.  The only major difference being the timing of the high tick of the day…which was $28.37 spot.  That came around 11:35 a.m. Eastern…almost two hours after gold’s high.  From that high, silver got sold off more than a percent going into the close.  The low tick in New York came right at the New York open…and that was $27.67 spot, so silver had quite a trading range…2.5% to be exact.

Net volume was very light once again…around 23,000 contracts…and silver closed at $28.04 spot, down a nickel from Tuesday.

The dollar index chopped higher in a fairly narrow range…with the high tick of the day [82.77], such as it was, coming at 9:00 a.m. Eastern time right on the button.  From that high, the index rolled over…and hit its New York low [82.52] shortly after 11:00 a.m…which was silver’s low tick of the day.

From there it rallied a bit until precisely 2:00 p.m. Eastern…and then slid lower in the close, finishing Wednesday just about where it closed on Tuesday…and Monday as well….around the 82.30 mark.

The stocks rose about a percent…and then traded sideways in a narrow range right up until 2:00 p.m. in New York.  Then a sell-off began…and the stocks got sold down and the HUI closed the trading day almost on its low…down 0.68%.

With the odd exception, the silver stocks finished down across the board, but not by a whole lot.  Bu the stocks that mattered finished higher on the day…and Nick Laird’s Silver Sentiment Index close up 0.55%.

(Click on image to enlarge)

The CME’s Daily Delivery Report showed that 283 gold and zero silver contracts were posted for delivery in the Comex-approved warehouses on Friday.  The biggest short/issuer by far was the Bank of Nova Scotia with 207 contracts…and the two biggest stoppers were HSBC USA and Deutsche Bank with 162 and 92 contracts respectively.  The link to yesterday’s Issuers and Stoppers Report is here.

There were no reported changes in either GLD or SLV…and no sales report from the U.S. Mint.

The Comex-approved warehouses had more activity to report on Tuesday.  They received 209,675 troy ounces of silver…and shipped 654,826 ounces of the stuff out the door.

Happily, I don’t have that many stories today…and a lot of the ones I do have are precious metal related, so I hope you at least have time for those.

With volumes as low as they were yesterday, I’m not prepared to read a lot into what happened in gold and silver during the New York trading session, although it was rather mysterious to see the rallies in both gold and silver come to a screaming halt before they got much above their Tuesday close.  These rallies only involved gold and silver.  Both platinum and palladium were unaffected.

As I’ve mentioned on several occasions over the summer, we seem to be in a holding pattern of sorts…losing ground in the London market…and then gaining it all back in New York, or vice versa.  Sort of two steps back and then two steps forward…and any semi-serious gains are conveniently sold off after the high tick of the day is in, in New York.  I wouldn’t have to use more than half the fingers on one hand [not including my thumb] to count the number of times that either gold or silver have closed on their high tick of the day in the New York Access Market this year, as it just ain’t allowed to happen.

As per usual, there was no price activity in either silver or gold during the Far East trading session on their Thursday…and little is happening now that London has been open a couple of hours.  Volumes, once again, are vanishingly small…and the dollar index is comatose.

The “dog days” of summer are such a pain when you’re waiting for events to unfold.  I think I’ll pour myself a glass of wine…and then change the batteries in my belly button lint brush.

See you on Friday.

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