The dollar index closed at 8376 in lateafternoon

first_img The dollar index closed at 83.76 in late-afternoon trading in New York on Monday…and then traded more or less sideways until 2:00 p.m. Hong Kong time…and the subsequent rally peaked out at 84.20 about 10:20 a.m. in New York.  Then, in less than three hours, the index fell to its low of 83.70 at precisely 1:00 p.m. EDT…giving up all of its earlier gains…and a few basis points more.  The index closed at 83.76…unchanged on the day. The gold price fell $40 as the dollar index rose 41 points between 2:00 p.m. in Hong Kong…and 10:20 a.m. in New York…but when the dollar index declined 52 basis points during the following two and half hours, the gold price only rose by about $15. I have the usual number of stories for a mid-week column…but not too many ones related to precious metals…and a couple of them are must reads. What is your “fair Share” of what someone else has worked for? – Thomas Sowell I was hoping for better price action than we got yesterday, considering the impressive key reversals all four precious metals painted.  But that was not to be…and gold’s attempt to break above the $1,400 spot price mark in late afternoon trading in Hong Kong got smacked immediately.  But the moves we actually got in all four precious metals were out of all proportion to the antics of the dollar index…a fact that I wrote about further up. The only ‘good’ thing about yesterday’s price action was the fact that, if all the data is reported in a timely manner, this Friday’s Commitment of Traders Report should be something to see, as yesterday at the close of Comex trading was the cut-off for it. As Ted pointed out in his commentary above…and as last COT Report showed…the precious metals are configured for a major move higher.  It only remains to be seen if JPMorgan et al will show up as long sellers/short sellers of last resort as prices rise through their critical moving averages. All we can do is wait it out. At the moment, gold and silver prices are miles below their current 20-day moving averages…the first moving average of any consequence [according to Ted] as far as the mega-short technical funds are concerned.  But sooner or later it will be pierced, either by price action or the passage of time, and then the technical funds who use this average as a target, will start heading for the exits. Here are the 6-month charts for both gold and silver with their respective 20 and 50-day moving averages… (Click on image to enlarge) Gold chopped around the $1,375 spot mark through most of Far East trading on their Wednesday, but about ten minutes before London opened, the gold price popped for about ten bucks.  It was the same story in silver, but it only moved about 15 cents during that same period.  As I write this paragraph, London has been open ten minutes, so we’ll see what happens once the trading day has a couple of hours under its belt. Volumes are pretty light…at least compared to the volumes we’ve seen lately at this time of day.  Most of it is still of the HFT variety…but there’s not a lot of it. The dollar index is up about 7 basis points. And as I hit the ‘send’ button at 4:30 a.m. Eastern time, nothing much has changed since I wrote the above paragraph.  Gold is up about twelve bucks…and silver is up two bits.  The dollar index is flat…and volumes, although understandably higher now, are still pretty light all things considered. I haven’t the foggiest idea how the rest of the trading day will turn out, but we’re set up for a rally of biblical proportions if “da boyz” don’t show up…and it’s just a matter of when, not if, that rally begins.  Then, in very short order, we’ll find what their intentions are. See you on Thursday. The gold shares gapped down almost 4 percent at the open…hit their low at 10:00 a.m. EDT when gold hit its low…and then rallied until around 1:00 p.m. in New York, before selling off into the close as gold did the same.  The HUI finished down 2.75%. (Click on image to enlarge) The CME’s Daily Delivery Report showed that 18 gold and 10 silver contracts were posted for delivery tomorrow within the Comex-approved depositories.  The link to yesterday’s Issuers and Stoppers Report is here. GLD had another withdrawal yesterday. This time it was 270,710 troy ounces…and as of 11:38 p.m. last night, there were no reported changes in SLV. The U.S. Mint had another sales report yesterday.  They sold 5,000 ounces of gold eagles…1,500 one-ounce 24K gold buffaloes…and 217,500 silver eagles. Over at the Comex-approved depositories, there was big movement in silver inventories on Monday.  They received 968,451 troy ounces…and shipped 1,119,034 troy ounces out the door.  The link to that activity is here. In gold on Monday, these depositories didn’t receive any, but shipped 32,033 troy ounces out the door…and the link to that activity is here. Here is today’s “cute quota”… The silver chart looked similar…and Nick Laird’s Intraday Silver Sentiment Index closed down 2.37%. Silver was under selling pressure right from the New York open on Monday evening…and was down about 50 cents by 9:00 a.m. Hong Kong time.  It rallied until around 2:00 p.m…and then, like gold, went into a slow decline, with the low also at the London p.m. gold fix…10:00 a.m. EDT in New York. And also, like gold, rallied until noon before selling off a bit into the close.  The noon low, according to Kitco, printed $22.00 spot. Silver closed at $22.43 spot…down 49 cents on the day.  Gross volume was a chunky 63,000 contracts.center_img The platinum and palladium charts looked mostly similar. (Click on image to enlarge) Sponsor Advertisement As last COT Report showed, the precious metals are configured for a major move higher After an exciting day on Monday, trading in the Far East was very quiet…and the attempt to break through the $1,400 spot mark around 1:30 p.m. Hong Kong time was the start of a long, slow sell-off that ended at the London p.m. gold fix.  The low tick at that point was, according to Kitco…$1,359.00 spot. The subsequent rally lasted until noon in New York…and that was it for the day. Gold closed at $1,376.00 spot…down $24.10 from Monday.  Net volume was very heavy…around 195,000 contracts. Drilling Intersects 102 Meters of 1.97 gpt Gold at Columbus Gold’s Paul Isnard Gold Project; Drilling Confirms Depth Extension of Gold Mineralization Columbus Gold Corporation (CGT: TSX-V) (“Columbus Gold”) is pleased to announce results of the initial five (5) core drill holes at its Paul Isnard gold project in French Guiana. The holes confirm depth extension of gold mineralization below shallow holes drilled on the 43-101 compliant 1.9 million ounce Montagne d’Or inferred gold deposit at Paul Isnard in the 1990’s and support the current program of resource expansion through offsetting open-ended gold mineralization indicated by the earlier holes. Robert Giustra, CEO of Columbus Gold, commented: “These drill results validate Columbus Gold’s approach to adding ounces with a lower-risk drilling program designed to infill and to extend the mineralized zones to 200 m vertical depth from surface; a depth amenable to open pit mining.”  Fourteen (14) holes have been completed (assays pending) by Columbus Gold in the current program and drilling is progressing at the rate of about 3,000 meters per month with one drill-rig on a 24 hour basis. Columbus Gold plans to accelerate the current program by engaging a second drill-rig as soon as one can be obtained.  Please visit our website for more information about the project.last_img

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