A Dollar Index ‘Rally’ Appeared In the Nick of Time on Monday

A Dollar Index ‘Rally’ Appeared In the Nick of Time on Monday by Ed Steer – GoldSeek

10 July 2018 — Tuesday


The gold price began to head quietly but unevenly higher as soon as trading began at 6:00 p.m. EDT in New York on Sunday evening.  That rally lasted until shortly after 12:30 p.m. BST in London on their Monday afternoon — and as soon as COMEX trading began, a dollar index ‘rally’ commenced almost at the same moment.  Most of the sell-off was done by minutes after 1 p.m. EDT — and although it gained a bit in early after-hours trading, it was sold down after that.

The low and high ticks in gold were reported by the CME Group as $1,255.70 and $1,266.90 in the August contract.

Gold was closed in New York on Monday at $1,257.20 spot, up $2.70 on the day.  Net volume was around 191,600 contracts — and roll-over/switch volume was 40,500 contracts on top of that.

The price path for silver was the same — and its high of the day came at the noon silver fix in London — and after a brief down/up move after the COMEX open, JPMorgan et al stepped into the market in a more serious manner at, or just before, the afternoon gold fix in London.  Silver was sold lower until very shortly after London closed — and it chopped quietly sideways for the remainder of the Monday session.

The low and high ticks in this precious metal were recorded as $16.055 and $16.26 in the September contract.

Silver was closed yesterday at $16.075 spot, up 6.5 cents from Friday’s close and, like gold, miles off its high tick of the day.  Net volume was about 55,400 contracts — and there was a hair under 6,000 contracts worth of roll-over/switch volume in this precious metal.

The platinum price traded flat until shortly after 8 a.m. China Standard Time on their Monday morning — and then began to head quietly higher.  That lasted for about three hours — and from that point it traded sideways until about thirty minutes after Zurich opened.  It edged higher from there until shortly after the 10:30 a.m. BST morning gold fix — and at that juncture, it ran into ‘something’ at the $857 spot mark — and it bounced off that price mark multiple times before suffering the same fate as gold and silver.  Its New York low came minutes after the COMEX close — and it crept a few dollars higher into the 5:00 p.m. EDT close of trading from there.  Platinum finished the Monday session at $849 spot, up 7 bucks from its close on Friday and, like silver and gold, well off its high tick.

For the most part, the palladium price traded in similar fashion to platinum.  It’s high tick of the day came at half-past lunchtime in Zurich — and then the price didn’t do much until minutes before the afternoon gold fix in London.  It was sold quietly lower from there until COMEX trading ended in New York — and it didn’t do a thing after that.  Palladium was closed yesterday at $954 spot, up 7 dollars as well.

The dollar index closed very late on Friday afternoon in New York at 93.96 — and began to head quietly and unevenly lower once trading began at 5:00 p.m. EDT on Sunday afternoon.  The 93.71 low tick was placed around 12:45 p.m. in London — and less than thirty minutes later, a ‘rally’ began.  The 94.22 high tick of the day was set around 1:25 p.m. EDT, which was about five minutes before the COMEX close.  It fell back to the 94.05 mark around 2 p.m. — and chopped quietly sideways until trading ended at 5:15 p.m. EDT.  The dollar index finished the day at 94.08…up 12 whole basis points from Friday’s close.

You’ll excuse me for thinking this, but that dollar index rally that began in New York shortly after 8 a.m. EDT yesterday morning, mostly likely had those ‘gentle hands’ fingerprints all over it.

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Various authors presenting analysis and commentary on the precious metals, economy and precious metals mining markets.