Could JPMorgan et al engineer a price decline at t

first_imgCould JPMorgan et al engineer a price decline at this juncture. Sure. They can do it anytime they want.Gold didn’t do much during the Far East trading session on Tuesday, but a smallish rally began shortly after 3:00 p.m. Hong Kong time around the $1,609 spot price mark.  The high of the day [$1,619.50 spot] came minutes before 9:00 a.m. in New York…and from there it got sold off to its low of the day [$1,607.70 spot] at 10:00 a.m. Eastern…the time of the London afternoon gold ‘fix’.  From that time onwards, it didn’t do much.Once again, net volume was pretty light…around 93,000 contracts…and gold closed at $1,612.30 spot…up the magnificent sum of 70 cents.Silver began to rally at the same moment as gold…and really took off to the upside about 1:00 p.m. in London…about twenty minutes before the Comex open.  Silver’s high point of the day, like gold, came about 8:50 a.m…and that price was $28.34 spot  Silver got sold off about two bits going into the 5:15 p.m close of electronic trading.Silver finished the Tuesday session at $28.10 spot…up 22 cents on the day.  Gross volume was pretty chunky, but once the roll-overs out of the September contract were removed, the net volume was very light…around 19,000 contracts.The dollar index didn’t do much at the Far East open…but rallied a bit going into the Hong Kong afternoon.  The high tick [82.38] came shortly after 3:00 p.m. Hong Kong time…and the low tick [82.07] came about 8:30 a.m. in New York.  From that low, the index rallied back and closed at 82.35…virtually unchanged from Monday.The rallies in both gold and silver coincided perfectly with the moves in the dollar index yesterday.The gold stocks opened up…and stayed up…and this time there was no last half-hour sell-off going into the close.  The HUI finished up 1.38% on the day.After Monday’s big price-run up, the silver shares had another decent day yesterday…and Nick Laird’s Silver Sentiment Index closed up another 1.56%.(Click on image to enlarge)The CME’s Daily Delivery Report showed that 76 gold and 4 silver contracts were posted for delivery on Thursday within the Comex-approved depositories.There were no reported changes in either GLD or SLV…and no sales report from the U.S. Mint, either.There was a huge amount of activity in silver for the second day in a row over at the Comex-approved depositories.  On Monday they reported receiving 225,034 troy ounces of silver…and they shipped  2,523,686 troy ounces out the door.On Friday and Monday combined, these five depositories received 3.31 million ounces of silver…and shipped 4.30 million ounces out the door.  This is almost two days of world silver production coming in the door…and more than two days of world silver production going out the door.  One has to wonder the reason behind this frantic in-out activity that’s occurring on a weekly basis.  Ted Butler says that in a ‘normal’ week, it’s only about 2 million ounces in and out.  So with the week still very young, it will be interesting to see if this level activity continues.The link to Monday’s activity is here…and it’s worth a quick look.It’s been a busy week for stories…and today’s column is no exception.  I hope you have time to skim them all.There are no markets anymore…only interventions. – Chris Powell, GATALike Monday, I wouldn’t read a whole heck of a lot into Tuesday’s price action, either.  Prices basically followed the dollar index…and it was just “another day off the calendar” as Ted Butler is wont to say.Yesterday, at the close of Comex trading, was the cut-off for August’s Bank Participation Report…and the new Commitment of Traders Report.  Just eye-balling the price patterns over the reporting week, I’d say that we’ll see an improvement in the Commercial net short position in both gold and silver…but I wouldn’t bet a huge amount of money on that.Could JPMorgan et al engineer a price decline at this juncture. Sure. They can do it anytime they want.  They could hit gold for around sixty bucks or so…and silver for a dollar or more.  But will they?  Don’t know.  September is a big delivery month for silver…and the roll-overs out of the September contract have just started…and there’s no reason to think that they couldn’t fix the markets so that all these options/futures contracts close out-of-the-money on or before expiry day.When they smashed the precious metals last week, they started on Wednesday morning in London…and had the deed done by the time the job numbers came out on Friday morning in New York.  There’s no reason why they couldn’t do it again if that’s their plan.  We’ll just have to wait it out.Nothing worth mentioning happened in the Far East on their Wednesday…and nothing much is happened in London during the first two hours of their trading day.  Volumes continue to be vapours…and the dollar index isn’t doing a thing, either.  Will the rest of the Wednesday session be just “another day off the calendar”…or something more exciting?  We’ll find out soon enough.Enjoy what’s left of your day…and I’ll see you here tomorrow. 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