GOLD AND SILVER HIT AGAIN AS JANET SPEAKS TO CONGRESS
Gold $1319.40 down $6.50
Silver 19.04 down 5 cents
In the access market 5:15 pm
THE DAILY GOLD FIX REPORT FROM SHANGHAI AND LONDON.
The Shanghai fix is at 10:15 pm est and 2:15 am est
The fix for London is at 5:30 am est (first fix) and 10 am est (second fix)
Thus Shanghai’s second fix corresponds to 195 minutes before London’s first fix.
And now the fix recordings:
Shanghai morning fix Sept 28 (10:15 pm est last night): $ 1327.50
NY ACCESS PRICE: $1325.60 (AT THE EXACT SAME TIME)
Shanghai afternoon fix: 2: 15 am est (second fix/early morning):$ 1328.12
NY ACCESS PRICE: 1325.40 (AT THE EXACT SAME TIME)
HUGE SPREAD TODAY!!
London Fix: Sept 28: 5:30 am est: $1324.80 (NY: same time: $1324.80: 5:30AM)
London Second fix Sept 16: 10 am est: $1322.50 (NY same time: $1324.80 , 10 AM)
It seems that Shanghai pricing is higher than the other two , (NY and London). The spread has been occurring on a regular basis and thus I expect to see arbitrage happening as investors buy the lower priced NY gold and sell to China at the higher price. This should drain the comex.
Also why would mining companies hand in their gold to the comex and receive constantly lower prices. They would be open to lawsuits if they knowingly continue to supply the comex despite the fact that they could be receiving higher prices in Shanghai.
Let us head over to the comex:
The total gold comex open interest FELL BY AN HUGE 16,812 CONTRACTS to an OI level of 583,161 as price of gold FELL by only $12.70 with YESTERDAY’S trading.We are continuing with the ritual that as soon as we approach the first day notice of an active month, the entire open interest complex obliterates. We are now in the NON active month of SEPTEMBER/
The contract month of Sept saw it’s OI ROSE by 3 contracts UP to 144. We had 5 notices filed yesterday so we GAINED BACK 8 gold contracts or an additional 800 gold ounces will stand for delivery.. The next delivery month is October and here the OI lost 9,198 contracts DOWN to 14,318. This level is still extremely elevated. To give you an idea as to its size, I will give you the burn rates for the 3 dates Sept 28, Sept 29 and Sept 30 last yr:
Sept 28.2015: 8279 contracts vs 14,318 Sept 28. 2016.
Sept 29.2015: 4351 contracts
Sept 30.2015: 3092 or 309200 oz (9.66 tonnes) standing for delivery. which was pretty good last yr.
We are a good 6,000 contracts ahead of last year. The next contract month of December showed an decrease of 7,478 contracts down to 450,651. The estimated volume today at the comex: 151,136 which is WEAK. Confirmed volume yesterday: 218,381 which is good.
Today we had 12 notices filed for 1200 oz of gold.
And now for the wild silver comex results. Total silver OI FELL BY 1955 contracts from 203,441 DOWN to 201,486 as the price of silver fell badly to the tune of 43 cents yesterday. We are moving FURTHER FROM the all time record high for silver open interest set on Wednesday August 3: (224,540). We are now into the next active month of September and here the OI fell by 5 contracts down to 493. We had 4 notices filed upon yesterday so we LOST 1 contract or 5,000 additional oz will NOT stand for delivery in this active month of September. The next non active delivery movement of October GAINED 32 CONTRACTS TO 372 contracts. The next big delivery month is December and here it FELL by 3415 contracts DOWN to 173,722. The volume on the comex today (just comex) came in at 48,766 which is very good. The confirmed volume yesterday (comex and globex) was huge at 71,608 . Silver is not in backwardation. London is in backwardation for several months.