Ed Steers Gold & Silver Daily / Casey Research 9/03/2014 | Tuesday Market Analysis GOLD The HFT boyz didnt leave us guessing long, as they showed up right from the open of trading in New York on Monday evening, with the low tick of the day coming about 10:30 a.m. EDT---and from there, the gold price recovered a small handful of dollars into the 5:15 p.m. close of electronic trading. The high and low ticks were recorded by the CME Group as $1,290.90 and $1,264.10 in the December contract. Gold finished the Monday trading session in New York at $1,265.80 spot, down $21.40 from last Fridays close. Net volume, including Mondays volume, came in around 175,000 contracts. Reader Brad Robertson sent the 5-minute gold price/volume chart for the time period starting about 2 a.m. MDT [add 2 hours for EDT] and its easy to see that the big volume came when HFT boyz spun their algorithms---and prices plunged as sell stops were hit---and the technical funds in the Managed Money category puked up longs and went short en masse. SILVER The Kitco silver chart looks similar, but the low came much later in the trading session, about 15 minutes before the Comex close. The high and low ticks in silver were reported as $19.565 and $19.11 in the December contract. Silver finished on Tuesday at $19.145 spot, down 31.5 cents from Friday. Net volume for both Monday and Tuesday trading sessions was reported as 53,500 contracts. PLATINUM & PALLADIUM Platinum got its just deserts as well, but it was palladium that really got it in the neck. Platinum was closed down $18 bucks, palladium got hammered for $29. On the day in percentage terms, gold got closed down 1.66%, silver down 1.62%, platinum down 1.27%---and palladium was the star of the day down 2.55%. USDX The dollar index closed on Monday at 82.77---and began to rally shortly after trading began in the Far East on their Tuesday morning. The 83.02 high tick came shortly before 10:30 a.m. EDT in New York---and then slid a handful of basis points into the close. The index finished the Tuesday session at 82.97, which was up 20 basis points on the day. GOLD & SILVER STOCKS As you already know by now, the gold stocks gapped down a bit over 2 percent at the open---and headed lower from there, with the HUI closing on its absolute low tick, down 3.60%. It was more or less the same for silver, except their equities rallied back quite a bit in the early going before succumbing to selling pressure---and the silver equities closed slightly off their lows. Nick Lairds Intraday Silver Sentiment Index closed down only 2.25%. The CME Daily Delivery Report for Day 2 of the September delivery month showed that only 25 gold and 39 silver contracts were posted for delivery within the Comex-approved depositories on Thursday. Nothing to see here, which I found rather surprising---and the link to yesterdays Issuers and Stoppers Report is here. The CME Preliminary Report for Monday and Tuesday price action showed that there are 149 gold and 1,513 silver contracts still open for delivery in September. Subtracting the Thursday deliveries posted in the paragraph just above, doesnt change these numbers by much. Ill be very much interested in seeing which bullion banks are the short/issuers on the remaining 1,500 or so contracts still outstanding. There was another withdrawal from GLD, as an authorized participant removed 57,712 troy ounces on Tuesday. And as of 9:35 p.m. EDT, there were no reported changes in SLV. But when I checked back at 2:40 a.m. EDT this morning, I was stunned to see that another deposit had been made into that particular ETF. This time it was an eye-watering 1,918,632 troy ounces. Is this another deposit being used to pay down the current short position in this metal? Beats me, but this deposit wont be in the shortsqueeze report next week. United States Mint There was no sales report from the U.S. Mint. COMEX There was a fairly serious gold withdrawal from the Comex-approved depositories on Friday, as JPMorgan shipped out 160,750.000 troy ounces. I thought that the even number looked suspicious, so I took out my calculator and divided it by 32.15, which is the number of troy ounces in a kilobar---and lo and behold, that amount converted to exactly 5,000 kilograms, so its obvious that all the gold was in kilobar form. There was a tiny withdrawal of 289 troy ounces from Brinks, Inc. as well. In silver, there was 381,142 troy ounces reported received---and only 60,393 troy ounces shipped out. #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: Wed, 03 Sep 2014 17:34:36 +0000
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