Ed Steers Gold & Silver Daily / Casey Research 11/01/2014 | Friday Market Analysis GOLD Well, you dont need me to tell you what happened in gold yesterday, as its pretty much self-evident from the Kitco chart posted below. After the HFT boyz hit the price at 7 a.m. GMT in London on their Friday morning, the price traded pretty flat until the Comex open---and then more short selling appeared, with gold hitting its low tick a minute or so after 9 a.m. in New York. The price retested that low shortly after 11 a.m. EDT---and then rallied until shortly before the Comex close---and then chopped sideways for the remainder of the Friday session. The CME Group recorded the high and low tick as $1,202.40 and $1,160.50 in the December contract, which is the new front month for gold. Gold finished the day at $1,172.90 spot, down $25.90 on the day---and well off its low. Net volume was over-the-moon at 275,000 contracts. SILVER It was more or less the same chart pattern in silver, although there was a bit of rally around the noon London silver fix. That all vanished, as the low tick of the day came minutes after the open of Comex trading. From that low, the silver price chopped unsteadily higher into the close. The high and low were recorded as $16.515 and $15.635 in the December contract, an intraday move of a bit over 5 percent, which is the second day in a row that sort of intraday move has occurred. Silver finished the Friday session at $16.175 spot, down 28.5 cents from Thursdays close. Net volume was sky-high once again at 74,000 contracts, which was the same net volume as we had on Thursday. PLATINUM & PALLADIUM Platinums price action on Friday was a mini version of what happened to gold and silver---and the low tick in that precious metal came after 9 a.m. EDT. From there it recovered a decent amount---and was only closed down 8 bucks on the day. After an up/down/up move that netted out to zero during early Far East trading, palladium also got hit at the Zurich open. From that low it rose quickly into positive territory---and rallied unevenly until shortly after 1 p.m. EDT---and from there it traded sideways for the remainder of the Friday session. Palladium finished up a very respectable 15 dollars on the day. USDX The dollar index closed at 86.18 late on Thursday afternoon in New York---and then did nothing until around 12:35 p.m. in Hong Kong on their Friday afternoon. Then away it went to the upside in two separate rallies, with the second one starting at 8 a.m. in New York. The 87.11 high tick came about 11:15 a.m. in New York. By noon the index had sold off a bit---and from there it traded flat into the close. The index finished the day at 86.91---up another 75 basis points. Heres the 6-month dollar index chart---and looking at the price action vs. the RSI trace, Id be hitting the bid at the open on Monday if I was long the U.S. dollar. GOLD & SILVER STOCKS The gold stocks gapped down 7.5 percent in the first few minutes of trading on Friday. They recovered a bit in the next half hour before chopping unsteadily sideways for the remainder of the day. The HUI finished down another 5.0 percent. Heres Nicks chart. It was more or less the same price chart for the silver equities---and Nick Lairds Intraday Silver Sentiment Index got creamed for 5.09 percent. The HUI has lost almost 17 percent during the last three trading days of the week. I havent kept track of the loses for the silver equities, but Im sure theyre of the same magnitude. However, one serious question you should be asking yourself at this point is who the buyers are that are scooping up all these shares that John Q. Public and the mutual funds are selling in a blind panic? Whoever they are, they have very deep pockets---and I would guess that they own a large chunk of the outstanding shares of most precious metal mining companies by now. If not that, then at least almost all of the float in each one---and it will be interesting to see how willing they are to sell on the next rally, if they sell at all. The CME Daily Delivery Report for Day 2 of the November delivery month showed that zero gold and 3 silver contracts were posted for delivery within the Comex-approved depositories on Tuesday. Nothing to see here. The CME Preliminary Report for the Friday trading session showed that November open interest in gold is down to 55 contracts---and silvers November o.i. is sitting at 119 contracts, down 45 contracts from Thursdays report, after subtracting out Mondays delivery. There were no reported changes in GLD---and as of 8:43 p.m. EDT yesterday evening, there were no reported changes in SLV, either. But when I checked back at 2:41 a.m. EDT this morning, I was amazed to see that an authorized participant had added 958,452 troy ounces of silver to SLV. Just think about that for a second. Since its $17.40 spike high at the Comex open on Tuesday morning, to its $15.80 spot low around 8:25 a.m. EDT Friday morning, the silver price has been clubbed for $1.60. Not only was no silver been removed from SLV during that time period---but the above amount was added. Well see what SLV has to report on Monday and Tuesday, as theres always some delay. United States Mint It was another big sales day over at the U.S. Mint yesterday. They reported selling 8,000 troy ounces of gold eagles---and 425,000 silver eagles. Assuming that Octobers sales numbers arent revised on Monday, the U.S. Mint sold 67,500 troy ounces of gold eagles---21,000 one-ounce 24K gold buffaloes---5,790,000 silver eagles---and 400 platinum eagles during the month just past. Based on these sales figures, the silver/gold ratio stands at 66 to 1. By the way, the 5.79 million silver eagles sold last month is the highest sales month of the year, at least so far. Teds big buyer[s] has been gorging itself/themselves because, as I said the other day, these sales in no way represent actual consumer demand, which still remains quiet. But, having said that, our bullion store had one of its biggest sales day of the year on Friday. Im sure that was a scenario repeated all across North American during the last day or so. COMEX It was another decent day for gold over at the Comex-approved depositories on Thursday. They reported receiving 75,100 troy ounces of the stuff---and shipped out only 3,547 troy ounces. The big receipt was at the HSBC USA depositories.. In silver, there was nothing reported received, but 419,317 troy ounces were shipped out the door for parts unknown---and three quarters of that was out of the JPMorgan depository.. #gold #silver #platinum #palladium #preciousmetals #copper #USDollar #USDX #stocks #goldstocks #silverstocks #HUI #GLD #SLV #DailyDeliveryReport #contracts #futures #USMint #GoldAmericanEagle #GoldBuffalo #SilverAmericanEagle #RCMint #GoldMapleLeaf #SilverMapleLeaf #Comex #CME #EdSteer #GoldAndSilverDaily #CaseyResearch
Posted on: Sat, 01 Nov 2014 17:16:38 +0000
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