The dollar index opened at 8292…and then moved si

first_img The dollar index opened at 82.92…and then moved sideways until shortly after 9:00 a.m. in London.  From there, it rose to its high of the day [83.13] around 8:30 a.m. in New York…and then it rolled over and headed south with some conviction.  The low tick [82.43] came shortly before 1:30 p.m. Eastern time…and from there it recovered a bit before trading sideways into the close.  The index finished down 35 basis points on the day, closing at 82.57. (Click on image to enlarge) What they show is the steady selling pressure that always exists [no matter what is going on in the real world] during the time between the London a.m. and p.m. fixes in gold…and the constant upward price pressure during the rest of the trading day. Not much happened during Far East and early London trading.  Prices are flat…and volumes are pretty light, with most of the volume of the high-frequency trading variety as usual.  The dollar index is down about 10 basis points as I hit the ‘send’ button on today’s column at 5:20 a.m. Eastern time. With today being Friday, I have no idea what to expect during the New York trading session, but I’ll be emotionally ready for any scenario that greets me when I switch my computer on later this morning. Before heading out the door today, I’d like to bring Casey Research’s Miller’s Money Forever newsletter to your attention.  The latest commentary is entitled Money Forever Retirement Plan…Social [In]Security…and you can read all about it at the link here…and it costs nothing to have a peek. Enjoy your weekend, or what’s left of it…and I’ll see you here tomorrow. The gold shares opened down a hair, but quickly rallied into positive territory…and stayed there for the remainder of the day.  The HUI finished up 1.03%. Silver was much more ‘volatile’ on Thursday…and had that surprise sell-off shortly after 10:00 a.m. in Hong Kong.  From that low, it rose back to almost unchanged by around 10:00 a.m. in London.  Then the silver price rolled over…hitting its low of the day [$28.47 spot] around 9:45 a.m. in New York…about twenty-five minutes after the Comex began to trade. From that low tick, the silver price rose quickly…and was capped around 10:00 a.m. Eastern as it made another assault on the $29 spot price mark.  The high tick at that point checked in at $29.01 spot. From that point, the price chopped sideways into the 5:15 p.m. Eastern time electronic close. Silver closed at $28.81 spot…down 11 cents from Wednesday.  Volume was very decent at around 45,000 contracts. Once again I have a lot of stories…and I’m never a happy camper when that’s the case…so do your best. They say that time is money. What they don’t say is that money may be running out of time. – Bill Gross Thursday was another day where not a lot happened in the grand scheme of things.  I asked Ted about the sell-offs yesterday…both in the Far East and London trading…and he said that the short-term price moves like these are pretty much all done by the high-frequency traders…and has nothing to do with supply and demand.  To attempt to read anything into this sort of price action was a mug’s game. Today we get the latest Commitment of Traders Report for positions held at the end of Comex trading at 1:30 p.m. on Tuesday.  Neither Ted nor myself are expecting big changes in the Commercial net short positions in either metal…but neither of us know for sure.  But whatever the numbers show, I’ll have all the gory details in tomorrow’s column. Despite Nick Laird’s computer problems, he was able to send me a couple of key charts that have graced this column a number of time during the last year or so…and one has to do with the gold price between the London a.m. fix…and the London p.m. fix.  What would have happened to your ‘investment’ if you were able to buy the London a.m. gold fix and sell the London p.m. gold fix.  The other chart is what would have happened if you’d bought the London p.m. fix and sold at the London a.m. fix the following morning.  The differences are quite spectacular…and should lay to rest the fact that the ‘fix’ has been in for gold ever since that last big run-up over thirty years ago. This is what Nick had to say when I asked about the scale on the ‘Y’ axis…was it in U.S. dollars? “It’s in dollars – but you need to understand how percentage advance/decline charts work before you go trumpeting that the price should be $37,020.27 or $12.38.  The plot is more indicative than definitive…and hence the right axis is in many ways moot…” “It’s the degree of move rather than the absolute value…and the degree of the move in one chart vs. the other [that] show[s] which way the forces are aligned.” Please note that the charts begin in 1970…so there is 42-plus years of data here. Sponsor Advertisement The 2 Energy Sectors You Should Invest in This Year Top energy analyst Marin Katusa, frequently featured in the financial media such as Forbes, Business News, Financial Sense News Hour, and the Al Korelin Show, says two highly undervalued energy sectors will provide windfalls for smart investors this year. Read his assessment, including which two energy sectors you should be bullish on for 2013… and which two you’d only lose money on. Click here for Marin’s free report, The 2013 Energy Forecast. (Click on image to enlarge) The silver stocks finished mixed…and Nick Laird’s Silver Sentiment Index closed close down 0.74% on the day.  Nick’s having some major issues at the moment, and is unable to update his Intraday silver chart…so here’s the ‘old’ one until he’s firing on all cylinders again. Short-term price moves like these are pretty much all done by the high-frequency traders It was another quiet trading day in the Far East…and during the first three hours of trading in London yesterday.  Then at 11:00 a.m. in London, the gold price came under some selling pressure.  The low of the day…$1,575.70 spot…came at 8:30 a.m. in New York, right on the button. From there it rallied to its high tick of the day, such as it was, and that occurred at 2:00 p.m. in the electronic market.  Kitco recorded that it as $1,594.50 spot. Gold closed down a bit from there at $1,590.30 spot…up $2.60 from Wednesday.   Net volume was similar to Tuesday’s and Wednesday’s volume…around 118,000 contracts. (Click on image to enlarge) The CME’s Daily Delivery Report showed that 125 gold and 3 silver contracts were posted for delivery on Monday within the Comex-approved depositories.  All 125 gold contracts came out of JPMorgan’s client account…and the biggest stopper by far was none other than Canada’s Bank of Nova Scotia.  The link to yesterday’s Issuers and Stoppers Report is here. For the second day in a row, there were no reported changes in either GLD or SLV. The U.S. Mint had a smallish sales report yesterday, as they only sold 110,000 silver eagles. Over at the Comex-approved depositories on Wednesday, they reported receiving 1,525,877 troy ounces of silver…and shipped 419,589 troy ounces of the stuff out the door.  The link to that activity is here.last_img

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