Short Sellers Run Rampant in the Precious Metal Stocks

Short Sellers Run Rampant in the Precious Metal Stocks By: Ed Steer via Gold Seek

YESTERDAY in GOLD, SILVER, PLATINUM and PALLADIUM

The gold price didn’t do much of anything in Far East trading on their Friday — and the low tick of the day, such as it was, came minutes after the London open.  It chopped quietly and unevenly higher from there, with every tiny rally attempt turned back before it could get too far.  The high tick, such as it was, came at noon in New York — and it edged unevenly lower into the 5:00 p.m. EDT close.

Once again, the low and high price ticks aren’t worth looking up.

Gold was closed at $1,285.80 spot, up $2.40 on the day.  Net volume was nothing special at 206,000 contracts — and there was a tiny bit under 36,000 contracts worth of roll-over/switch volume on top of that.

The silver price rose and fell a nickel or so in morning trading in the Far East on their Friday — and then didn’t do much of anything until after the noon silver fix was put to bed in London.  It began to head lower from there — and there was a rather vicious down/up price spike at the 8:20 a.m. EDT COMEX open, with the subsequent rally being capped minutes before 9 a.m.   It was sold lower going into the afternoon gold fix in London — and then crawled very quietly and unevenly higher until COMEX trading ended at 1:00 p.m. EDT.  Most of that tiny gain disappeared by the time trading ended at 5:00 p.m. in New York.

The price shenanigans at the COMEX open, only occurred in the spot month — and the low and high ticks aren’t worth looking up in this precious metal, either.

Silver was closed at $14.735 spot, up 1.5 cents from Thursday.  Net volume was very quiet at around 41,400 contracts — and there was just under 4,600 contracts worth of roll-over/switch volume on top of that.

Platinum rallied a bunch in morning trading in the Far East, before running into ‘something’ — and from about 10:35 a.m. China Standard Time onwards, it chopped very unevenly sideways until shortly before 10:30 a.m. in New York.  It rallied a bunch more from there — and that rally appeared to get capped a few minutes after 12 o’clock noon EDT — and it crawled sideways into the close from there.  Platinum finished the day at $863 spot, up 16 bucks from Thursday’s close.

Palladium began to head higher starting at 8:00 a.m. CST on their Friday morning — and that rally appeared to get stopped in its tracks the moment it broke back above the $1,300 spot mark just after 9 a.m. CST.  The price didn’t do much of anything after that, but was sold a bit lower starting shortly after 1 p.m. in Zurich.  The low of the Friday session was set about fifteen minutes after the COMEX open in New York — and it headed sharply higher from there until fifteen minutes before the Zurich close.  From that juncture it crept unevenly sideways until trading ended at 5:00 p.m. EDT in New York.  Platinum finished the Friday session at $1,333 spot, up 52 dollars on the day and, like platinum, would have closed considerably higher, if allowed, which it obviously wasn’t.

The dollar index closed very late on Thursday afternoon in New York at 97.32 — and then chopped  quietly but nervously sideways until some economic news or other appeared at 8:30 a.m. in New York.  The 97.13 low tick was set around 10:35 a.m. EDT — and it edged higher until around 3:15 p.m. — and didn’t do a whole lot after that.  The dollar index finished the day at 97.32…unchanged from Thursday’s close.

Once again the action in the currencies had zero to do with what was happening in the precious metals.

Here’s the intraday DXY chart, courtesy of the folks at ino.com.  The ‘click to enlarge’ feature does not help with this chart.

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