All us old warriors in the GATA camp will have our hi-gain antennas turned up in anticipation of a price smash.
I wouldn’t read much into yesterday’s price action in gold, as it was just another day off the calendar as Ted Butler is wont to say.
The low came around 12:30 p.m. in London local time…7:30 a.m. in New York…and the gold price attempted to rally from there.
The strange event of the day was the spike high tick [$1,735.50 spot] that came at precisely 2:00 p.m. Eastern time in the New York electronic market. It, along with every other tiny rally during the Comex trading session, got cut off at the knees before they could really develop into anything.
Gold closed at $1,727.60 spot…up $2.70 on the day. Net volume was pretty light at around 130,000 contracts…about 15 percent higher than on Tuesday.
Here’s the New York Spot Gold [Bid] chart on its own. The spike at 2:00 p.m. is very noticeable here. I’m not sure it means a whole heck of a lot, put you hardly ever see this kind of price action in the New York electronic market.
The silver price action on Wednesday had a lot more structure to it…although its overall price pattern was virtually the same as gold’s. The low, like gold [around $32.35 spot], came at 12:30 p.m. GMT in London…and the subsequent rally got hit at the 2:00 p.m. spike high [$33.05 spot] in New York electronic trading. The rally from the low to the high was around 70 cents.
Needless to say, the silver price got sold off after that…and closed at $32.74 spot…up 24 cents. Net volume was around 35,000 contracts…about 1,000 less than Tuesday.
I was going to post the New York Spot Silver [Bid] chart at this point but, once again, it’s M.I.A. on Kitco’s website.
It should be obvious once again that without the intervention of JPMorgan and friends, both silver and gold would have finished materially higher on Wednesday…and that applies to Monday and Tuesday New York price action as well.
The dollar index spent the second day in a row chopping around mostly above the 81.00 mark…and finished the day at 81.12.
Despite the fact that the gold price traded mostly in positive territory yesterday, the gold stocks turned out to be just stocks, as they got caught up in the sell-off of the general equity markets as well. Their price path mirrored the DOW almost exactly…and when the smoke cleared, the HUI was down 4.59%…closing almost on its low of the day.
The silver stocks got smoked as well…and Nick Laird’s Silver Sentiment Index closed down 4.97%.
The CME’s Daily Delivery Report showed that 14 gold and 1 silver contract were posted for delivery on Friday from within the Comex-approved depositories.
Over at GLD, an authorized participant withdrew 77,512 troy ounces of gold…and there were no reported changes in SLV.
There was a small sales report from the U.S. Mint. They sold 5,500 ounces of gold eagles…500 one-ounce 24K gold buffaloes…and 500 silver eagles.
There was big activity over at the Comex-approved depositories on Tuesday. They reported receiving 1,145,782 troy ounces of silver…and shipped 1,514,655 troy ounces out the door. The link to that activity is here.
I have no charts today, so here are a couple of ‘critter’ photos that Nick Laird sent me over the last few days. The first is an Australian Bushturkey that he photographed from his front verandah. Unlike the domesticated variety, this fellow can fly and, despite its name and their superficial similarities, the bird is not closely related to the American turkey.
The spider below is not related to Shelob…but looks like it could be. It’s a Golden silk orb-weaver…and in real life is about 15 cm [6 inches] across…which gives you some idea of the size of the web they spin. I saw one of the South American varieties of this spider when I was visiting Pucallpa in Peru…and it gave me the horrors. A big spider here in Canada would be 2 cm.
I have the usual number of stories for a week day, so I hope you have the time to at least skim the parts that I’ve cut and paste from each one. The first story could have come right from the front page of the National Enquirer…but it’s actually from The Telegraph.
I feel quite comfortable predicting that gold prices will, within the next year, be at $2,000…perhaps higher. – Barrick Gold CEO Jamie Sokalsky
The gold price didn’t do much of anything on Wednesday…and it’s been more or less like that ever since this week began. Volumes have been very light as well. As I said yesterday, this has to change, as all the owners of Comex December futures and options contracts have to sell, roll, or stand for delivery between now and the end of the month…and there are mountains of these contracts still on the books. I would guess that the real serious activity won’t start until next week. Whether or not we get a big engineered price decline between now and the end of the month, is still debatable…but I’m always on the lookout for such an event.
I wasn’t enamoured with the share price action yesterday. Even though the Dow was down, it wasn’t down that much…and both gold and silver spent most of the day in positive territory…and closed in the black as well.
All of us old warriors in the GATA camp will have our hi-gain antennas turned up in anticipation of a price smash…because in the ‘old days’…an out-of-blue-for-no-good-reason drop in the precious metal equities, was pretty much always a precursor to a waterfall decline in metal prices. Will that be the case this time? Beats me…but if it is, I won’t be surprised.
Tomorrow we get the latest Commitment of Traders Report for positions held at the close of Comex trading on Tuesday…and I’ll be more than interested to see if last Wednesday’s monstrous volume spike had any internal effect on the Commercial net short positions in both metals.
Nothing happened price or volume wise in either precious metal during Far East trading on their Thursday…and that situation has carried over into the first couple of hours of London trading as well. The dollar index is flat. However, I expect the Comex trading activity to be quite different. As I hit the ‘send’ button on today’s column at 4:45 a.m. Eastern time, gold is down a couple of bucks…and silver is down a bit over a dime.
I hope your day goes well…and I’ll see you here tomorrow.
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The Company has also been growing its resource and reserve base at both 100% owned operations. A new resource/reserve estimate is expected for the Guanajuato Mine Complex and the San Ignacio Project in the second quarter of 2012 and a new resource/reserve estimate for the Topia Mines during the third quarter of 2012. Great Panther continues to replace mined ounces, grow resources and reserves at both operations, and is targeting a 10 year mine live at each.