As of the close yesterday the double bottom in go

first_imgAs of the close yesterday, the double bottom in gold was about 15 bucks away—and it’s a given that they’ll be gunning for it—plus more, if what they did to the silver price yesterday is any indication.And as I type this paragraph at 12:45 a.m. EDT gold, which had traded mostly flat for the greater part of the thinly-traded Far East trading day on their Friday, came under pressure shortly before 1 p.m. Hong Kong time—and is down a bit more than 10 bucks.  Silver came under the same price pressure shortly after 9 a.m. Hong Kong time and is down about two bits.  Platinum isn’t doing much.  Palladium tried to rally during the early going in Far East trading, but then got sold down below its New York close by 9 a.m. Hong Kong time—and is actually up a buck or so at the moment.  Volumes in both gold and silver are astonishingly high already.  The dollar index, which was trading flat, began to rally around 12:40 p.m. in Hong Kong—and is now up 40 basis points.Today, at 3:30 p.m. EDT, we get the latest COT Report for positions held at the close of Comex trading on Tuesday.  I’d guess we’ll see slight improvements in the Commercial net short positions in both gold and silver, but that is entirely inconsequential compared to what the report would show if one could be produced at precisely this moment.It’s obvious that JPMorgan et al are going all out to get as favourably positioned as possible in the Comex futures market, as I expect whatever lows are set going forward will never be seen again once the the inevitable rallies that will follow all this, begin.  The Fed meeting—and the ensuing ‘strength’ in the dollar index—are just the smoke screen that they’re using to do the dirty.And as I hit the ‘send’ button on today’s column at 4:57 a.m. EDT, I see that the HFT boyz and their algorithms are back—showing up in all four precious metals at 7 a.m. GMT in London.  The LBMA must open at 7 a.m. and not 8 a.m GMT this week.  They dropped the gold price another $18 in minutes—and at one point silver was down over 50 cents from its Thursday close.  Both are now off their lows by a bit.  Platinum and palladium also got hit as well, but they’ve rallied back to almost unchanged, at least for the moment.Here’s the silver chart as of 4:55 a.m. EDT.Gold volume has exploded to 95,000 contracts—and silver’s volume is 21,000 contracts.  The dollar index, which had been up over 50 basis points at one time, is now up ‘only’ 42 basis points.With today being month end—and Hallowe’en—it appears that JPMorgan et al have nothing but tricks up their sleeves for all the precious metal enthusiasts today—and I must admit that I’m not expecting great things when I roll out of bed and check the charts later this morning.But this too, shall pass.See you tomorrow. Silver price is now back to where it was in the first quarter of 2010The gold price wasn’t allowed to do much in early Far East trading on their Thursday—and developed a negative bias around 1 p.m. Hong Kong time—and by the time JPMorgan et al were through, with the low tick coming at 11:30 a.m. EDT, they had gold down around fifteen bucks from it’s Thursday close.  It recovered a few dollars off that low by noon, but then chopped sideways for the remainder of New York trading session.The high and low tick were recorded as $1,216.50 and $1,195.50 in the December contract.Gold closed yesterday at $1,198.80 spot, down $12.80 from Thursday’s close.  Net volume was very high at 195,000 contracts.The silver price didn’t do much in Far East trading up until shortly before 2 p.m. Hong Kong time.  At that point the HFT boyz and their algorithms showed up—and the rest, was they say, was history.  The low tick was in at 11:15 a.m. EDT—and from there it bounced off that low a few times before rallying a bit.  After 12:30 p.m., the price chopped sideways in a tight range until the 5:15 p.m. EDT close of electronic trading.The high and low in silver were reported as $17.205 and $16.33 in the December contract, which was an intraday move of a hair over 5 percent.Silver finished the Thursday session at $16.46 spot, down 63 cents from Thursday’s close.  That’s a new low price for silver going back to March of 2010.  Net volume was a whopping 74,000 contracts.Platinum also ran into the same not-for-profit seller shortly before 2 p.m. in Hong Kong.  It’s low came minutes before 12 o’clock noon in New York.  It rallied a few bucks from there before trading flat for the remainder of the Thursday session.  Platinum was closed down 17 bucks.The palladium price got smacked twice yesterday.  The first time was at the New York open at 6 p.m. on Wednesday evening—and the second time was at the London p.m. gold fix on Thursday.  Like platinum, JPMorgan et al set the low of the day just minutes before noon EDI—and the price didn’t do much after that.  Palladium was closed down 16 dollars on the day.The dollar index closed at 85.99 late on Wednesday afternoon in New York—and then took three steps up to its 86.41 high tick, which came shortly after London opened on their Thursday.  From there it quietly sold back to the 86.00 mark by 12:20 p.m. EDT.  It gained some back by 2 p.m.—and then traded sideways into the close.  The index finished the Thursday session at 86.18—up 19 basis points on the day.Once again the gold shares got crushed, as the HUI closed lower by 7.44%—the biggest one-day decline that I can remember—and I can remember quite a lot.  The HUI is down almost 12 percent in the last two trading days.The silver equities fared better, but that’s only a relative term in this situation, as Nick Laird’s Intraday Silver Sentiment Index got hammered for another 5.65 percent.The CME Daily Delivery Report for Day 1 of the November delivery month showed that 2 gold and 44 silver contracts were posted for delivery on Monday.  In silver, the only short/issuer was Jefferies—and R.J. O’Brien and Canada’s Scotiabank stopped 25 and 18 contracts respectively. The link to yesterday’s Issuers and Stoppers Report is here.As I said in yesterday’s missive, barring any surprises, the November delivery month will be a yawner—and it’s certainly lived up to its advanced billing.The CME Preliminary Report for the Thursday trading session showed that November open interest declined by 207 contracts and now sits at only 67 contracts left—minus the two in the previous paragraph.  In silver, the November open interest is now down to 164 contracts, minus the 44 posted for delivery tomorrow that were mentioned above.There was another withdrawal from GLD yesterday, as an authorized participant took out 38,449 troy ounces and, once again, there was no change in SLV.Since there were no withdrawals or additions to SLV during the reporting week, which ended on Wednesday,  there was no report from Joshua Gibbons yesterday.For the second day in a row, there was no sales report from the U.S. Mint.I’ll certainly be interested if they update their sales report for today, which is the last business day of the month.  If they don’t, the sales report for Monday should be quite something, as the mint has now gotten into the practice of withholding sales at the end of the month if it pushes silver eagles sales for the current month, too high.There was no gold received at the Comex-approved depositories on Wednesday, but 96,450.000 troy ounces were shipped out—and that amount is precisely 3,000 kilobars, probably heading to China.  The link to that activity is here.It was a very quiet day in silver, as nothing was received—and only 7,060 troy ounces were shipped out.Nick Laird surprised me with the latest withdrawal from the Shanghai Gold Exchange for the week ending October 24.  It was another very chunky amount, as 59.684 tonnes were reported withdrawn—and here’s Nick’s most excellent chart.Once again I don’t have a lot of stories for you today—but there are several in here that fall into the absolute must read category so I hope you can make time for them.Since the commercials are so collusive and in control of the technical funds’ trading activities, they can do with the technical funds as they see fit. I truly believe that the key to understanding the manipulation is to know that the commercials control everything that the technical funds do; just like a puppeteer controls a puppet. If it were otherwise, we wouldn’t see the clear pattern in managed money behavior in silver (and other COMEX/NYMEX metals) of massive technical fund buying as prices rise and selling on declining prices, always ending in extreme positions at reversal points. With this in mind, the only explanation that seems plausible to me as to why the commercials let the technical funds off the hook the last two occasions of extreme managed money shorting is because the commercials were biding their time and waiting for a more opportune time to put it to the technical funds. Let’s face it, the technical funds have been like the goose that laid golden eggs for the commercials. You don’t cook and eat a goose like that without a thought. What I’m saying is that the commercials know that they can maneuver the technical funds into any extreme position at any time they want and that earlier in the year the commercials let the technical funds off the hook because they knew they could do it again whenever the commercials desired. (That’s my explanation, but if anyone has a different take, please drop me a note). – Silver analyst Ted Butler: 29 October 2014Yesterday’s price action in all four precious metals in general, but gold and silver in particular, should have come as no surprise, as JPMorgan et al attempt to drive as many of the Managed Money traders as possible off the long side and onto the short side in gold.I must admit that I was more than taken aback by the hatchet job that they managed to perform on the silver price, because with the Managed Money already holding a record short position, the selling had to come from somewhere other than the Commercial category—and that only leaves the small traders in the Nonreportable category as the long sellers/short buyers.Of course it’s possible that the Managed Money has gone even shorter than they already have, but without a Commitment of Traders Report to look at, it’s impossible to tell—and none of the price action of the last three trading days, including today, will be in the COT Report that comes out later this afternoon.Here are the 6-month charts for both both gold and silver—and as I mentioned at the top of this column, the silver price is now back to where it was in the first quarter of 2010.last_img

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