JPMorgan et al hauled the precious metals prices d

first_imgJPMorgan et al hauled the precious metals prices down with naked brute forceNOTE:  I will be at the Vancouver Investment Conference for the next five days.  Because of that, my Friday, Saturday…and Tuesday columns are going to be as short as I can possibly make them. I have other fish to fry while I’m there…and sacrifices have to be made…and this is one of them.The gold price rallied in fits and starts all through Far East and most of London trading on Wednesday, but got sold down a bit beginning shortly after 9:00 a.m. in New York.But once the London p.m. gold fix was in, the gold price blasted higher…reaching its high tick of the day of $1,416.00 spot at 10:15 a.m…fifteen minutes later.  It took JPMorgan et al almost to the close of London trading at 11:00 a.m. EDT to kill that rally and drive the gold price back below its Tuesday close…safely back under $1,400 spot…and an intraday trading range of seventy bucks.The low price tick at 2:45 p.m. in electronic trading…and Kitco recorded that as $1,346.00 spot.Gold close on Wednesday at $1,369.70 spot…down $6.30 from Tuesday’s close.  Volume was immense, as the short sellers of last resort used a lot of paper gold to put the London p.m. gold fix fire out.  Net volume was 259,000 contracts.It was pretty much the same price pattern in silver.  Silver’s high tick at 10:15 a.m. in New York was reported as $23.46 spot…and the 2:45 p.m. EDT low was recorded as  $22.12 spot.  That was an intraday move of $1.34.Silver closed at $22.27 spot…down 16 cents from Tuesday.  Volume in silver was very chunky as well…79,500 contracts.The price patterns for platinum and palladium were similar as well…and here are their respective charts… I don’t have all that many stories for you today…and I’ll leave the final edit up to you.Among the many misdeeds of British rule in India, history will look upon the Act depriving a whole nation of arms as the blackest. — Mohandas Gandhi, An AutobiographyWell, not too many shades of grey in yesterday’s price action, as JPMorgan et al hauled the precious metals prices down with naked brute force…selling whatever Comex paper contracts necessary to keep prices where they’re currently sitting.Based on the structure of last Friday’s Commitment of Traders Report, which will most likely show an even more wildly bullish set-up in tomorrow’s report, you have to wonder what “da boyz” are waiting for.  As I’ve mentioned a few times already, we’ll probably have a triggering event of some kind, but it was obvious from yesterday’s price action that the powers that be didn’t want the Fed news to be the event that set it off…although it was as equally obvious that all four precious metal wanted to blow sky high.Looking at the current economic, financial and monetary situation…you just have to wonder how much time we have left before the whole thing collapses in a heap.  Maybe the Fed and JPMorgan et al are awaiting that day when everything melts down before they finally allow the precious metals market to melt up.  We’ll find out, as they say, in the fullness of time.In Thursday trading in the Far East, the gold price got sold down to its low shortly after 10:00 a.m. in Tokyo…and has been rallying a bit ever since.  Gold and silver volumes are very high as London opens at 8:00 a.m. BST…and the dollar index is flat.And as I hit the ‘send’ button at 4:50 a.m. Eastern time, the gold price is up a respectable eighteen bucks…and silver is up about 20 cents.  The dollar index has taken a real header in the last hour or so…and is down about 41 basis points.  Gold’s net volume is already 50,000 contracts…and silver’s gross volume is at the 12,000 contract mark, so these rallies are not going unopposed.The rest of the Thursday trading day could be educational…and I await the Comex open in New York with great interest.See you tomorrow. The dollar index closed at 83.76 in late afternoon trading in New York on Tuesday…and then didn’t do much until 10:00 a.m. in New York.  After a two-minute 27 basis point dip, the dollar index blasted higher…reaching it’s zenith at 12:30 p.m. EDT.  From there it slid a hair into the close…finishing the Wednesday session at 84.28…up 48 basis points from Tuesday’s close.If you’d like to believe that the Fed minutes…or Bernanke’s commentary…had much to do with precious metal prices yesterday, you’re certainly entitled to hold that opinion.  The dollar index and all four precious metals were blasting higher together, until the not-for-profit sellers showed up at 10:15 a.m. EDT and put an end to it.  That’s why volumes in both gold and silver were over the moon…because, as I said, it took enormous fire power to kill the precious metal rallies stone-cold dead.The gold stocks were up over 5 percent before JPMorgan et al put in an appearance…and by the London close, most precious metal stocks were back to almost unchanged on the day.  For the most part, the gold stocks followed the price of the metal itself very closely…although there was a bit of a rally in the last thirty minutes of trading that lifted the HUI from no gain, to finish up 1.16%.Of course it was pretty much the same sort of price action in the silver equities as well…but Nick Laird’s Intraday Silver Sentiment Index closed down 0.16%.(Click on image to enlarge)The CME’s Daily Delivery Report showed that zero gold and 40 silver contracts were posted for delivery on Friday…and the link to yesterday’s Issuers and Stoppers Report is here.There were more withdrawals from both GLD and SLV yesterday.  In GLD, it was 96,682 troy ounces…and in SLV, it was an eye-watering 5,648,281 troy ounces.  This huge amount of silver was obviously not plain-vanilla investor liquidation…and as Ted Butler mentioned in yesterday’s column, he feels that it’s JPMorgan and a few other bullion banks helping themselves by redeeming shares they already own…probably ones they bought in the April 12/15 engineered price decline…or in Monday’s bear raid…or both.There was a smallish sale by the U.S. Mint yesterday.  They reported selling another 37,500 silver eagles.Over at the Comex-approved depositories on Tuesday, they didn’t report receiving any silver…but shipped 669,991 troy ounces out the door. The link to that activity is here.In gold on Tuesday, these same depositories reported receiving 57,855 troy ounces of the stuff…and didn’t ship any out.  The link to that activity is here.I have no charts or graphs for you today, so here’s your “cute quota” before all the stories posted below.last_img

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