¤ YESTERDAY IN GOLD & SILVER
After doing nothing through all of Far East trading...and the first three hours of London action, the gold price went vertical at 12:00 o'clock noon GMT, which just happened to coincide with the London silver fix.
Then minutes before the Comex open, either the buyer disappeared, or a not-for-profit seller showed up to prevent the price from breaking through the $1,600 price ceiling. Then about fifteen minutes after the London p.m. gold fix was in, the gold price rose sharply once again...only to run into another wall of selling that drove the gold price down to its 11:30 a.m. Eastern time low in New York. From there, the gold price traded more or less sideways into the 5:15 p.m. electronic close.
Gold's high tick of the day [$1,599.70 spot] came just minutes before 10:30 a.m. in New York...and the New York low tick [$1,589.60 spot] was in about an hour after that.
When all was said and done, gold closed at $1,592.70 spot...up $10.90 on the day. Net volume was rather light at 117,000 contracts, give or take a few thousand. The scale of the Kitco chart below makes the price action look more impressive than it really was. But, as I noted, it was obvious...at least to me...that there was a willing seller present to make sure that the gold price did not break above, or close above, the $1,600 spot price mark once again.
It was more or less than same price action in silver. The low tick of the day was around $28.85 spot...and that price printed about 11:30 a.m. GMT in London...about thirty minutes before the noon silver fix. Silver's high tick of the day...$29.47 spot...came just minutes after the Comex open...and from there the price pattern was virtually the same as gold's.
Silver closed at $29.15 spot...up a whole 16 cents on the day, so you can see that the price got sold down over a percent from its absolute high that came shortly after the Comex open. No for-profit seller ever sells like that...ever! Net volume was pretty light as well...around 28,500 contracts.
Here are the platinum and palladium charts as a comparison...
The dollar index opened on Tuesday at 82.62 in Far East trading. The continuing rally took it up to its 82.77 high around 9:30 a.m. in London. But at 8:00 a.m. in New York, it fell almost 30 basis points in just over an hour, hitting its nadir of 82.43 just before the equity markets opened in New York. From that point it rallied back to just above unchanged, before sliding a hair into the close. The index finished the Tuesday session at 52.58...down 4 whole basis points on the day.
It seems pointless to note [for the umpteenth time] that the currency moves had zip to do with what happened in the precious metal markets yesterday.
The gold stocks gapped up...and hit their high at the 10:30 a.m. New York high tick in the gold price, before selling off a bit after that. From gold's New York low at 11:30 a.m. Eastern time, the gold stocks traded almost ruler flat into the close. The HUIfinished up a very respectable 2.26%.
The same can be said for the action in the silver shares as well. Nick Laird's Intraday Silver Sentiment Index closed up a very decent 2.41%...and a few junior producers didmuch better than that.
(Click on image to enlarge)
The CME's Daily Delivery Report for Tuesday showed that 133 gold and 1 lonely silver contract were posted for delivery tomorrow within the Comex-approved depositories. In gold, JPMorgan Chase was by far the biggest short/issuer, with 132 of those contracts...and the only two long/stoppers were Canada's Bank of Nova Scotia with 68 contracts...and with 65 contracts. The link to yesterday's Issuers and Stoppers Report is here.
Well, it was another day...and another decline in the GLD ETF, as an authorized participant withdrew a smallish 13,586 troy ounces of gold. However, the SLV ETF went the other direction...in spades...as it reported a deposit of 1,836,369 troy ounces of the stuff...almost one full day of world silver production!
While on the subject of both SLV and GLD...Ted Butler gently reminded me that I had forgotten to post the current short interest data for the end of February on both of these ETFs in my Tuesday column, so I will make amends here. The short interest in SLV dropped by 4.07%...and the short interest in SLV stood at 2.34% of the outstanding shares as of February 28th, which is not a lot. But the GLD ETF went in the other direction, as its short position blew out by a very chunky 32.94%. As of the end of February, the short position in GLD was 6.40%. That's quite a bit, but it has been worse.
The U.S. Mint had a smallish sales report yesterday. They sold 39,000 more silver eagles, but nothing else.
Over at the Comex-approved depositories on Monday, they reported receiving 649,561 troy ounces of silver...and shipped 811,920 troy ounces of the stuff out the door. The link to that activity is here.
I have the usual number of stories for a weekday but, as always, the final edit is up to you.