The gold price didn’t do much of anything until around 8:30 a.m. China Standard Time on their Tuesday morning. Then it rallied into the morning gold fix in Shanghai — and then traded sideways before rallying a bit more into the afternoon gold fix over there. From that point it chopped sideways in a very tight range until the London p.m. gold fix was done with. Then away it went to the upside before running into the usual short buyers and long sellers of last resort — and by 11 a.m. EDT, which was the London close, the high tick was in for the day. It was sold quietly lower into the COMEX close from there — and then rallied sharply shortly after that. However, those gains weren’t allowed to last, as it was sold lower into the 5:00 p.m. EDT close.
The low and high ticks aren’t worth looking up, but here they are anyway. They were reported as $1,230.00 and $1,239.10 in the June contract.
The price path for silver yesterday was mostly similar to gold’s, but much quieter. The only major difference was that the silver price began to rally a few minutes before the COMEX close — and although its spike higher in the thinly-traded after-hours market was capped and driven lower by ‘da boyz’ at the point, it continue to rally quietly after that right into the 5:00 p.m. close of trading.
The low and high ticks in this precious metal were recorded as $16.61 and $16.865 in the July contract.
Here’s the 5-minute tick chart for silver, courtesy of Brad Robertson. As you can see, the volume only became material starting around 6:00 a.m. Denver time on the chart below, which was 8:00 a.m. in New York. There was very decent volume in post-COMEX trading, especially on the big volume spike that accompanied that price spike around 12:20 p.m. MDT/2:20 p.m. EDT. Twenty minutes after that, volume was back to background levels.
The vertical gray line is 10:00 p.m. Denver time, midnight in New York — and noon China Standard Time [CST] the following day in Shanghai—and don’t forget to add two hours for EDT. The ‘click to enlarge‘ feature is a must.
The palladium price was up about five or six dollars shortly before the morning gold fix in Shanghai was printed — and then it didn’t do much until at, or just after, the noon silver fix in London. It rallied another five dollars or so from there until 9 a.m. in New York, It chopped mostly sideways until it rallied a bit more after the COMEX close, but wasn’t able/allowed to trade above the $940 spot mark. It finished the day at $939 spot — and up 12 bucks from its close on Monday.
Like on Monday, palladium was the outlier once again. It was up three buck or so by around 9:30 a.m. CST on their Tuesday morning — and then traded almost ruler flat until shortly after the Zurich open. It rallied into the noon silver fix in London — and shortly after that it began to head lower, with the $781 spike low tick coming around 12:30 p.m. in New York. It recovered about 9 dollars by 1 p.m. EDT — and then crept higher by a few dollars in the thinly-traded after-hours market. Palladium was closed yesterday at $791 spot, down a buck on the day…10 dollars off its low — but 13 dollars off its high.
As I mentioned in yesterday’s column, it would appear that someone was placing a short position of some size on Monday — and that may or may not have been the same again on Tuesday. Friday’s COT Report will tell all, as the data from both days will be in it.
The dollar index closed very late on Monday afternoon in New York at 98.88 — and began to head quietly lower the moment that trading commenced in New York at 6:00 p.m. EDT on Monday evening. That sell-off developed some real legs starting shortly after 12:30 p.m. in Shanghai — and the 98.08 low tick was set around 2:15 p.m. EDT in New York…which was the precise times in the thinly-traded after-hours market that gold and silver got sold lower. The index crept quietly higher from there until around 4:50 p.m. EDT — and then traded ruler flat into the close. If finished the Tuesday session at 98.22 — down 66 basis points from its close on Monday.
For a dollar move that size, there certainly should have been more price action in the precious metals, but that obviously wasn’t allowed to materialize. In the last three trading days, the dollar index has declined a 143 basis points, but gold is only up 9 bucks — and silver by 39 cents.
The gold stocks certainly didn’t do much yesterday — and actually dipped into negative territory for a few minutes as well, so it was almost a relief that they closed in the green, as the HUI finished higher by 0.25 percent. I was underwhelmed.
The silver equities did marginally better once again, as Nick Laird’s Silver Sentiment Index closed higher by 1.10 percent — and here’s the 6-month chart. I was totally underwhelmed with this performance as well. Click to enlarge.
The CME Daily Delivery Report showed that zero gold and 28 silver contracts were posted for delivery within the COMEX-approved depositories on Thursday. Once again it was ABN Amro as the sole short/issuer. ADM stopped 16 contracts for its client account, Morgan Stanley picked up 7 for its client account — and Macquarie Futures picked up 5 contracts for their own in-house [proprietary] trading account. The link to yesterday’s Issuers and Stoppers Report is here.
The CME Preliminary Report for the Tuesday trading session showed that gold open interest in May fell by 1 lonely contract, leaving 32 still open. Monday’s Daily Delivery Report showed that 8 gold contracts were actually posted for delivery today, so that means that another 8-1=7 more gold contracts were added to the May delivery month. Silver o.i. in May actually rose by 28 contracts, leaving 111 still around, minus the 28 mentioned in the previous paragraph — and I would assume these two transactions are directly related. Monday’s Daily Delivery Report showed that zero silver contracts were actually posted for delivery today, so that obviously means that 28 more silver contracts were added to the May delivery month.
So far this month, there have been 4,467 silver contracts issued and stopped, with more getting added every day without exception.
There were no reported changes in GLD yesterday, but there was another deposit at SLV, as an authorized participant added 1,419,462 troy ounces.
There was a very decent sales report from the U.S. Mint yesterday. They sold 2,500 troy ounce of gold eagles — 1,500 one-ounce 24K gold buffaloes — and 505,000 silver eagles. Sales in all three of these bullion coins so far in May are now past where they were for the entire month of April.
It was pretty quiet in gold over at the COMEX-approved depositories on the U.S. east coast on Monday. Nothing was reported received — and only 9,998.950 troy ounces were shipped out. There was 353.650 troy ounces/11 kilobars [U.K./U.S. kilobar weight] shipped out of Canada’s Scotiabank — and the remaining 9,645.300 troy ounces/300 kilobars [SGE kilobar weight] came from HSBC USA. I won’t bother linking this amount.
It was far busier in silver once again, as 1,196,125 troy ounces were reported received, but only 170,928 troy ounces were shipped out. There was a shipping container…599,182 troy ounces…dropped off at CNT; another container…595,876 troy ounces…was left outside the vault over at Canada’s Scotiabank — and one good delivery bar arrived at Delaware. In the ‘out’ activity, there was 110,681 troy ounces shipped from Brink’s, Inc…plus 60,246 troy ounces shipped out of Scotiabank. The link to all this activity is here.
It was an average day over at the COMEX-approved gold kilobar depositories in Hong Kong on their Monday. They reported receiving 2,850 of them, but they only shipped out 171. All of this activity was at Brink’s, Inc. — and the link to that, in troy ounces, is here.
I have an average number of stories, plus one 35-minute long video as well — and I’ll happily leave the final edit up to you.
This time Fitch was right. One month ago the rating agency listed 8 retail names that were most likely to file for bankruptcy next, just over a month later 1 out of the 8 was down, when teen clothing retailer Rue21 filed a prepackaged bankruptcy on Monday night in Pennsylvania bankruptcy court.
In its bankruptcy petition, the company which retained Kirkland & Ellis as legal advisor, Rothschild as financial advisor, and Berkeley Research as its restructuring advisor, listed both assets and liabilities in the range of $1 to $10 billion.
The restructuring process, during which the company will operate as normal, will lead to company’s “transformation into a more focused and highly performing retailer” the company announced in a press release, and added that as part of its restructuring process, it had “entered into a Restructuring Support Agreement (RSA) with certain of its stakeholders that confirms the support of the Debtors’ key constituents for the Debtors’ restructuring process and contemplates, among other things, an emergence from chapter 11 proceedings in the fall of 2017 with a significantly deleveraged balance sheet. In particular, lenders holding 96.8% of the Company’s secured term loan, bondholders representing 60.2% of the Company’s issued and outstanding unsecured notes, and the Company’s majority shareholder each executed the Restructuring Support Agreement.”
This Zero Hedge article appeared on their Internet site at 10:59 a.m. EDT on Tuesday morning — and I thank Brad Robertson for bringing it to our attention. Another link to it is here.
The Washington Post story about President Trump’s supposed leak of highly classified intelligence information about ISIS to the Russians is a case study of the lengths to which the President’s enemies are prepared to go in order to discredit him and to stop any chance of a rapprochement with Russia.
Briefly, The Washington Post claims that Trump told Russian Foreign Minister Lavrov and the Russians during his recent meeting with them in the Oval Office information about an alleged plot by ISIS to carry out attacks on passenger aircraft using laptops. The Washington Post describes Trump’s supposed wrongdoing in this way:
President Trump revealed highly classified information to the Russian foreign minister and ambassador in a White House meeting last week, according to current and former U.S. officials, who said Trump’s disclosures jeopardized a critical source of intelligence on the Islamic State.
The information the president relayed had been provided by a U.S. partner through an intelligence-sharing arrangement considered so sensitive that details have been withheld from allies and tightly restricted even within the U.S. government, officials said.
The partner had not given the United States permission to share the material with Russia, and officials said Trump’s decision to do so endangers cooperation from an ally that has access to the inner workings of the Islamic State. After Trump’s meeting, senior White House officials took steps to contain the damage, placing calls to the CIA and the National Security Agency.
This very worthwhile news item was posted on theduran.com Internet site around 7 a.m. on Tuesday morning EDT — and it’s the first of two in a row from Roy Stephens — and another link to it is here.
Russian officials have given a withering response over the course of the day to The Washington Post’s story that U.S. President Donald Trump leaked “highly classified information” to Russian Foreign Minister Sergey Lavrov during their recent meeting in the Oval Office.
I have discussed this story and explained why it is a cynical attempt to spin a standard diplomatic exchange into something sinister here.
First off was Russian President Putin’s spokesman Dmitry Peskov, who is reported to have said this
“This is not a theme for us. It’s nonsense. We do not want to have anything to do with this nonsense. This is utter nonsense. It is not something to either confirm or deny.”
The more cogent comment was however made by the Russian Foreign Ministry’s redoubtable spokeswoman Maria Zakharova in an interview with the Kommersant FM radio station:
This is the second story in a row from theduran.com website — and the second contribution in a row from Roy Stephens. It showed up on their Internet site around 9 a.m. EDT yesterday morning — and another link to it is here.
This 35-minute presentation from Mike Maloney appeared on his Internet site yesterday morning. You’ll see overwhelming evidence that stocks, bonds, and real estate could be in biggest bubbles of all time — and it’s certainly worth you while if you have the time.
I’m sure there’s not much in here that you don’t already know, but Mike’s ability to focus your mind on the facts at hand is a reason that his work is so popular. I thank Harold Jacobsen for sharing it with us.
The latest movies in the Disney franchises “Pirates of the Caribbean” and “Cars” are set to hit the big screen this summer, but Disney CEO Bob Iger is reportedly warning that hackers are holding an unreleased Disney film for ransom, to be paid in Bitcoin.
During a town hall meeting on Monday with American Broadcasting Company employees in New York City, Iger revealed that hackers may have stolen an upcoming, unreleased Disney film. Iger said that the hackers have threatened to release the movie, piece by piece, unless the company agrees to pays a large ransom in Bitcoin, numerous sources told the Hollywood Reporter.
The Walt Disney Co chief reportedly said that the hackers are demanding “a huge sum” in Bitcoin and are threatening to release parts of the film, starting with the first five minutes, followed by subsequent 20-minute segments until the ransom is paid.
Disney’s next two upcoming major movies are “Pirates of the Caribbean: Dead Men Tell No Tales,” which is scheduled to open on May 26, and “Cars 3,” which is scheduled to open on June 16.
This news story put in an appearance on the rt.com Internet site at 3:19 a.m. Moscow time on their Tuesday morning, which was 8:19 p.m. in New York EDT on Monday evening — and arrived in my in-box thirty minutes too late to make yesterday’s column. I thank Swedish reader Patrik Ekdahl for sending it along — and another link to it is here.
[T]hat the mainstream media are equating “Russia-gate” and Watergate tells you what is afoot.
Trump is hated by this city, which gave him 4 percent of its votes, as much as Nixon was. And the deep-state determination to bring him down is as great as it was with Nixon.
By 1968, the liberal establishment had lost the mandate it had held since 1933, but not lost its ability to wound and kill presidents.
Though Nixon won 49 states, that establishment took him down. Though Ronald Reagan won 49 states, that establishment almost took him down in the Iran-Contra affair.
And that is the end they have in mind for President Trump.
This must read commentary by Pat was posted on his Internet site early on Monday evening EDT — and I lifted it from a Zero Hedge article that Brad Robertson sent our way. Another link to it is here.
Ukraine’s President Petro Poroshenko has imposed a ban on Russia’s biggest social media networks and internet services popular with millions.
His decision is a significant ramping up of sanctions on Ukraine’s neighbour for its annexation of Crimea and the continuing conflict in eastern Ukraine.
Those targeted include social networks VK.com and Odnoklassniki, search engine Yandex and the Mail.ru email service.
Ukrainian service providers have been ordered to block access to the sites.
The companies’ offices in Ukraine will also face asset freezes and other restrictions although it was not immediately clear how the ban on the services would come into force and whether Ukraine had the technical means to enforce it.
The situation in the Ukraine is getting more childish with each passing decree. This article was posted on the bbc.com Internet site on Monday sometime — and it’s the second contribution of the day from Patrik Ekdahl. Another link to it is here.
Is China’s push to deleverage its financial system over?
That is the question following last night’s dramatic reversal in recent PBOC liquidity moves, when after weeks of mostly draining liquidity, the central bank injected a whopping 170 billion yuan (net of maturities), or $24.7 billion, the biggest one-day cash injection into the country’s financial markets (and contracting shadow banking system as first reported here last week, when we showed the first drop in China Entrusted Loans in a decade) in four months. The surprising move was “a fresh sign that Beijing is trying to mitigate the damage to investor confidence inflicted by its recent campaign to tamp down speculation fueled by excessive borrowing” according to the WSJ.
Today’s injection was the the largest since just before the Lunar New Year holiday in January, when Chinese banks traditionally stock up on liquidity.
Why the sudden shift?
The huge cash injection followed comments from Chinese officials in recent days which hinted they are getting concerned that recent moves to tighten market regulation have caused too much disruption. As a reminder, in recent weeks money market rates and yields on corporate bonds had all shot up to multi-year highs.
The real reason may be simpler: with a major leadership shuffle due later this year, the central bank is not taking even the smallest chances of turmoil in the banking sector. and as such admitted that – once again like in 2013 – its posturing to delever the world’s most leveraged financial system was just that.
This very worthwhile Zero Hedge article was posted on their Internet site at 9:42 a.m. on Tuesday morning EDT — and I thank Brad Robertson for sharing it with us. Another link to it is here.
Alibaba founder Jack Ma has spoken about how China’s ‘One Belt–One Road’ trade initiative differs than the world trade organisations set up in the 1990s and early 2000s which have largely been seen as failures for the many while benefiting the few.
“The greatest difference between the Belt and Road Initiative and general globalisation lies in the inclusion of young people, women, smaller enterprises and developing countries. It aims to reach more people. This is both a responsibility and an opportunity”.
“Last year I spent more than 820 hours travelling all across the globe to gain insight into the world. It is important to be there, observe and think. We want to do something different. Instead of simply selling our products to Belt and Road countries or importing cheap labour and raw materials, we want to create jobs, stimulate overseas economies and improve people’s livelihoods”.
Ma’s words echo those of Chinese President Xi Jinping who spoke at the economic forum in Beijing, saying,
“We have no intentions to meddle in the internal affairs of other countries via bringing our social system and the development model, or by imposing our will (on other states)”.
This is another story from theduran.com Internet site — and it comes courtesy of Roy Stephens as well. It appeared there very early on Tuesday morning EDT — and another link to it is here.
Russian President Putin in answer to journalists’ questions in Beijing has squarely laid the blame on US foreign policy for causing North Korea to launch a programme to acquire nuclear weapons.
This is how President Putin spoke about North Korea’s programme during a press conference he gave in Beijing today
Question: News came in during the forum that North Korea has carried out another missile launch. What is your view on such reports and how do you assess the threats these launches pose?
Vladimir Putin: Firstly, I would like to reiterate that we categorically oppose any expansion to the club of nuclear powers, including by means of including North Korea. We have made our position clear to our partners, including the North Koreans. We consider this counterproductive, harmful and dangerous.
On the other hand, we understand that the recent global developments, in particular blatant violations of international law, invasion of foreign states, regime change and the like, are spurring this arms race. In this context, we should act comprehensively to strengthen the system of international guarantees with reliance on international law and the UN Charter.
This worthwhile news item showed up on theduran.com Internet site as well — and it’s another contribution from Roy Stephens — and another link to it is here.
Vladimir Putin answered media questions following a working visit to the People’s Republic of China.
This 3:52 minute youtube.com video clip from that media scrum appeared on their website on Tuesday sometime — and I thank Roy Stephens for his final contribution to today’s column.
The government is working on a plan to establish a gold reserve to anchor the introduction of a local currency when the right time comes for the return to the Zimbabwe dollar, it has been learned.
This comes at a time when the country is grappling with cash shortages and economists believe that the issuance of a gold-backed local currency would help stimulate economic activity.
Modeled around the $200 million Afreximback facility, which is backing the current bond notes in circulation, the local currency, economists believe, will ease liquidity challenges and stimulate aggregate demand.
Plans to create a gold reserve involve investing in the efficient operations of the government’s gold-mining firms, including the Sabi, Elvington, and Jena gold mines. …
Mines and Mining Development Minister Walter Chidhakwa said the gold reserve would complement the Sovereign Wealth Fund, where a set of minerals would be reserved for future generations.
This gold-related news story was posted on the herald.co.zw Internet site on Tuesday sometime — and I found it in a GATA dispatch yesterday. Another link to it is here.
A central bank Gold Pool which many people will be familiar with operated in the gold market between November 1961 and March 1968. That Gold Pool was known as the London Gold Pool.
This article is not about the 1961-1968 London Gold Pool. This article is about collusive central bank discussions relating to an entirely different and more recent central bank Gold Pool arrangement. These discussions about a second Gold Pool began in late 1979, i.e. more than 11 years after the London Gold Pool had been abandoned. This article is Part 1 of a 2 part series. Part 2 will be published shortly.
These discussions about a new Gold Pool arrangement took place in an era of soaring free market gold prices and in the midst of the run-up in the gold price to US$850 in January 1980.
The discussions and meetings about a new Gold Pool in 1979 and 1980 and beyond which are detailed below, occurred at the highest levels in the central banking world and involved the world’s most powerful central bankers, some of whose names will be familiar to readers. The aim of these central bank discussions and meetings was to reach agreement on joint central bank action to subdue and manipulate the free market gold price in the early 1980s. Many of these collusive meetings were private meetings between a handful of Group of 10 (G10) central bank governors, and took place in the actual office of the president of the Bank of International Settlements in Basel, Switzerland.
Above all, these central bank meetings show intent. Intent by a group of powerful central banks to manipulate a free market gold price so as to distort free market gold pricing signals. So these documents are timeless in that regard. The documents also illustrate the concern that a rising gold price in the free market creates for senior central bankers, and importantly, also shows that these same central bankers have no qualms, at least from a legal or moral perspective, of intervening to manipulate a gold price when they see it as a threat to their fiat currency monetary system.
This very long, but very worthwhile commentary by Ronan appeared on the bullionstar.com Internet site on Tuesday — and it falls into the absolute must read category, as does Chris Powell’s preamble to it. It reads like a spy novel. I found this item on the gata.org Internet site — and another link to it is here.
Today’s ‘critter’ is the pine martin, or American pine martin as it’s sometimes called…just to differentiate it from its European cousin. The American marten is broadly distributed in northern North America. From north to south its range extends from the northern limit of treeline in arctic Alaska and Canada to northern New Mexico. In the western United States and Canada, American marten distribution is limited to mountain ranges that provide preferred habitat. I’ve seen exactly one of these creatures — and that was in Jasper National Park back in the 1970s. The click to enlarge feature only helps a bit with these two photos.
“In the end, more than freedom, Athenians wanted security. They wanted a comfortable life, yet lost it all; security, comfort, and freedom. When they finally wanted, not to give to society, but for society to give to them; when the freedom they wished for most was freedom from responsibility; Athens ceased to be free, and was never free again.” — Edward Gibbon (1737-1794) The History of the Decline and Fall of the Roman Empire [c.1776]
Except for the smallish rallies into the morning and afternoon gold fixes in Shanghai, there wasn’t much price action in gold and silver on Tuesday until the London p.m. gold fix was done at 10 a.m. EDT. The subsequent rally lasted until the 11 a.m. London close, when the gold price was capped — and then it chopped quietly lower right into the 5:00 p.m. close yesterday. Silver didn’t do much until a few minutes before the COMEX close and it rallied right up until trading ended at 5:00 p.m. EDT. Even with these small prices moves, it was obvious that ‘da boyz’ were ever vigilant. Palladium was the outlier for the second day in a row, as it got pounded down to a new low again — and as I said in my comments further up, I’ll be interested in what the COT Report on Friday has to show in that precious metal.
Here are the 6-month charts for all four precious metals, plus copper, as usual — and all of the silver price ‘action’ after the COMEX close, doesn’t show up in Tuesday’s doji, but it will later this afternoon when Stockcharts.com updates their data for Wednesday. The click to enlarge feature helps a bit with the first four charts.
And as I type this paragraph, the London open is less than ten minutes away — and I note that after trading flat for the first forty-five minutes after the markets opened in New York at 6:00 p.m. EDT yesterday evening, the gold price rallied sharply — and was obviously capped around 8 a.m. China Standard Time on their Wednesday morning. It has been chopping mostly sideways since — and is up $6.50 an ounce at the moment. The silver price also rallied, but not by as much — and was quickly sold lower. It’s been chopping sideways since around 9:30 a.m. in Shanghai — and is only up 3 cents currently. Platinum’s rally also suffered the same fate as silver — and it’s only up a dollar. Ditto for palladium, but it’s now down 2 bucks on the day as the Zurich open approaches.
Net HFT gold volume is already up to 64,000 contracts, so the short buyers and long seller of last resort…JP Morgan et al…are obviously at battle stations. The same can be said for silver as its net HFT volume is a bit over 12,000 contracts already.
The dollar index continues to slide — and it’s down 29 basis points as London opens.
Yesterday, at the close of COMEX trading, was the cut-off for this Friday’s Commitment of Traders Report. Despite all that’s going on in the U.S. right now, along with the declining dollar index, gold is only up about 15 bucks during the reporting week, so I’m expecting some deterioration in the Commercial net short position in this report. Silver is up about 50 cents during the same period, so I’m expecting the same for its numbers as well.
Ted and I spent some time discussing this on the phone over the last couple of days — and I’ll be more than interested in his thoughts when he posts his mid-week column later this afternoon. His opinion differs from mine by some amount — and I’ve learned from hard experience that I pretty much always crash and burn when that’s the case.
The ‘get Trump outta there at any cost’ news continues to dominate the headlines in the U.S. right now — and from my seat here in Edmonton, I get the impression that Washington is paralyzed at the moment until the Deep State gets this situation resolved…one way or another. I don’t even want to guess at what the “or another” part might consists of. I get the distinct impression that the Deep State would like to arrange another motorcade through the streets of Dallas, Texas if it could.
And as I post today’s column on the website at 4:01 a.m. EDT, I see that the gold price has been inching lower during the first hour of trading in London — and is up only $6.10 the ounce. It’s the same for silver — and it’s only up a penny currently. Platinum is back to unchanged — and palladium is now down 5 bucks.
Net HFT gold volume is up to 71,000 contracts, which is higher by about 5,000 contracts or so in the last hour — and in silver that number is approaching 13,500 contracts.
The dollar index has rallied off it’s current 97.88 low tick, which came about forty minutes before the London open — and is only down 10 basis points at the moment.
As for what may or may not happen for the rest of the day, I haven’t a clue. Each day is becoming more of a crap shoot as the situation in Washington continues to deteriorate. At the moment, ‘da boyz’ have certainly kept a lid on things — and it will be interesting to see how the remainder of the Wednesday trading session unfolds in the precious metals…especially in New York.
That’s it for another day — and I’ll see you here tomorrow.
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