The dollar index closed on Friday at 8277…and gap

first_img The dollar index closed on Friday at 82.77…and gapped down about 10 basis points as soon as trading opened on Sunday night in New York.  After that, it rallied to its high of the day…82.89…which came at the open of equity trading in New York…9:30 a.m. Eastern time.  From there it got sold off into the close…finishing the Monday session at 82.65…down 12 basis points on the day. A cursory glance at the gold and silver charts from yesterday shows no correlation between the precious metals and the dollar index. Although gold’s low came at 10:30 a.m. in New York, the gold shares didn’t hit their nadir until 12:15 p.m. Eastern.  After that they rallied weakly along with the gold price…and then traded sideways after 2:00 p.m. Eastern time.  The HUI finished up 1.49%. Sponsor Advertisement Being a Tuesday, I have lots of stories from the weekend…and a goodly portion of them are gold related and well worth reading, so I hope you can find the time to spend on them. Obviously the U.S. Mint can’t keep up with demand for Silver Eagles…placing it in violation of the law which mandates enough bullion Silver and Gold Eagles must be produced to satisfy demand. But man-made laws can’t trump the law of supply and demand indefinitely. Many are still quick to point out that any silver shortage is confined to a number of retail forms of silver and not in the wholesale industry standard form of 1,000 oz bars. That seems to be true, but the silver retail shortage is burning intensely and the winds are strong and the firebreak separating retail and wholesale are more likely than ever to be breached. The simple fact is that these retail silver shortages have been flaring up on a recurring basis over the past few years and the current one is the strongest one yet. From everything I’ve observed, the retail shortage is bound to intensify…and I won’t keep it a secret as to what is the underlying cause – the price of silver is too low. – Silver analyst Ted Butler…20 April 2013 In a bifurcated market such as this one, it’s always hard to determine whether the hourly and daily charts for gold or silver are remotely close to free markets.  At times they have characteristics of a free market…but then a not-for-profit seller shows up…and that’s it for the day…with yesterday’s price action in both gold and silver being another case in point. As Ted mentioned in his quote above, the silver price is too low…way too low…and so is gold.  And as Grant Williams so exquisitely put it in his commentary posted above…”I can promise you that not a single one of those crashes, collapses, or crises ended up with retail investors stampeding to buy the asset that was supposedly cratering.” As the stories in the ‘Crticial Read’ section have pointed out…the precious metal markets are a firestorm of buyers…and they have sucked the pipeline clean of all precious metals world-wide over the last week.  It will take many months to fill it again, if it can be done at all, especially if JPMorgan Chase et al continue to keep the precious metals at these giveaway prices. We’re still only selling 100 oz. silver bars at the store, as that’s all we can get…and I’d bet that even this tiny window that we have into the silver market will disappear soon.  There’s nothing to buy anywhere, unless you want to pay a huge premium on e-bay. Well, the Commitment of Traders Report was not changed yesterday, so I doubt very much if it will be until Friday’s COT Report.  At that point we’ll find out whether this now-obvious false reporting from last week will be rectified at that point…or have JPMorgan Chase and the CME Group corrupted this report permanently?  We’ll find out soon enough. This bifurcated market cannot…and will not last.  The total disconnect between the paper market price and the physical market price has to resolved…and resolved quickly…as the pressure on physical demand has gone supernova.  Now that this fire is lit, it will be self-sustaining until prices change…and change drastically. The bullion banks and central banks are really up against it now…and have been caught in a trap of their own making…a plan that literally blew up in their faces.  They discovered in a real hurry that the buyers of 2013 were wise to them…and didn’t react the way they had back in 2011 when “da boyz” pulled this same stunt. If there every was a time for the world’s central banks to mark up the prices of all the precious metals [plus copper and crude oil] this would be the time to do it.  But in order to kill demand in precious metals stone-cold dead…it will take a big price adjustment to do it…and that’s why they’re going all-out to rid themselves of as much of their short positions [and/or go long] in these six commodities as they can.  And that’s why the last COT report was a fabrication, as they don’t want anyone to see what progress they’re making. I note that all four precious metals came under selling pressure in the thinly-traded and highly illiquid Far East trading session on their Tuesday, with the lows coming just moments before 3:00 p.m. in Hong Kong…which was just moments before the 8:00 a.m. BST London open.  As of 3:30 a.m. Eastern time, gross volumes are already very chunky in gold…over 44,000 contracts…and over 12,000 contracts [net] in silver.  The high-frequency traders are definitely out and about. And as I hit the ‘send’ button at 5:10 a.m. Eastern time, I see that “Da Boyz” continued to be active even past the London open…and it should come as no surprise to you, dear reader, that silver was hit the hardest once again.  As you already know, this precious metal is the biggest problem child of JPMorgan Chase, Canada’s Bank of Nova Scotia…and HSBC USA.  Gold is down about eleven bucks…and silver is down 65 cents..but was down over 80 cents at its 8:55 a.m. BST low.  Gold’s gross volume is now north of 58,000 contracts…and silver’s net volume is just above the 15,000 contract mark. The dollar index dipped about 15 basis points going into the London open…and then blasted skyward.  It’s just an eyelash above the 83.00 mark as I write this. I’m watching the current situation with morbid fascination and, like everyone else out there, I’m making things up as I go along, as this really is a Star Trek-type of precious metals market.  Right now we’re only at Warp Factor 1…but I don’t expect that to last too much longer. The rest of today’s trading action, once we get past the noon silver fix in London, should prove interesting. See you tomorrow. Here’s your “cute quota” for the day… (Click on image to enlarge) For whatever reason, the CME Daily Delivery Report was never updated from Friday’s data.  I’m looking at the correct page on their website at ten minutes before midnight Eastern Daylight time…and it has not been updated.  Normally it’s updated by 10:00 p.m. Eastern. Well, the finally did the update, but it was after midnight Eastern time before the got around to it. I discovered it around 4:30 a.m. Eastern when I was doing the final edit.  The report showed that 43 gold and 11 silver contracts were posted for delivery tomorrow…and the link to the current Issuers and Stoppers Report is here. GLD took another big hit yesterday, as 589,959 troy ounces were reported withdrawn yesterday…and as of 11:55 p.m. Eastern time last night, there were no reported changes in SLV. There was a decent sales report from the U.S. Mint yesterday.  They sold 7,500 ounces of gold eagles…7,000 one-ounce 24K gold buffaloes…and 681,000 silver eagles. Over at the Comex-approved depositories on Friday, they didn’t report receiving any silver…but they shipped 702,149 troy ounces of the stuff out the door.  The link to that activity is here. Monday was another busy sales day at the store…but not quite as busy as Friday.  Gold sales were really strong, as one customer came in and ordered an eye-watering amount of gold maple leafs.  We still only have 100 oz. silver bars for sale…and there was still no change from the mints or the wholesalers, as none of them are taking orders. Here’s a chart that reader Richard Sypher sent my way yesterday.  He borrowed it from yesterday’s edition of the “Daily Pfennig“..and I thank him for it.center_img Silver’s price pattern was similar, but the rally into the noon hour London high wasn’t anywhere near as impressive as gold’s.  After that high tick, the silver price pretty much followed the gold price pattern. Silver closed at $23.41 spot…up a whole 13 cents from Friday’s close.  Volume, net of roll-overs out of the May contract, was only 32,500 contracts. The precious metal markets are a firestorm of buyers…and they have sucked the pipeline clean Gold traded flat when it opened in New York on Sunday night…but early in Tokyo trading on their Monday morning, the price jumped up about ten bucks…and stayed there until 10:00 a.m. in London, where it jumped up a few more times, but ran into the proverbial brick wall shortly after 12:00 o’clock noon BST. From that high, gold got sold down about twenty-five bucks…hitting it New York low at 10:30 a.m. Eastern time.  After that, it slowly gained back some of that loss by 2:00 p.m…and then didn’t do much going into the 5:15 p.m. close of electronic trading. Gold closed the Monday trading session at $1426.30 spot…up $19.80 on the day.  Gross volume was around 199,000 contracts…with a large chunk of that occurring early in the trading day…up until the London high of the day. The silver stocks traded mixed…and Nick Laird’s Intraday Silver Sentiment Index closed up a smallish 0.57%. Freegold Ventures Limited is a North American gold exploration company with three gold projects in Alaska. Current projects include Golden Summit, Vinasale and Rob. Both Vinasale and Golden Summit host NI 43-101 Compliant Resource Calculations. An updated NI 43-101 resource was calculated on Golden Summit in October 2012 and using 0.3 g/t cutoff  the current resource is 73,580,000 tonnes grading 0.67 g/t Au for total of 1,576,000 contained ounces in the indicated category, and 223,300,000 tonnes grading 0.62 g/t Au for a total of 4,437,000 contained ounces in the inferred category. In addition to the Golden Summit Project the Vinasale also hosts a NI 43-101 resource calculation which was updated in March 2013. Indicated resources are 3.41 million tonnes averaging 1.48 g/t Au for 162,000 ounces, and Inferred resources are 53.25 million tonnes averaging 1.05 g/t Au for 1,799,000 ounces of gold utilizing a cutoff value of 0.5 grams/tonne (g/t) as a possible open pit cutoff. Please send us an email for more information, ir@freegoldventures.comlast_img

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