caseyresearch.com / By Ed Steer / December 27, 2012
“The other question remaining is, when these rallies get started, will JPMorgan et al go back on the short side?”
December 24th trading was pretty quiet in gold. The price rose to the $1,665 spot mark into the London open…and then slowly got sold off from there into an early New York close. It finished the trading day on Monday at $1,658.30 spot…and it was no surprise that volume was very light. I didn’t even both writing it down.
On Tuesday, gold got sold down the moment trading began at 6:00 p.m. in New York on Christmas Day/evening…but an hour later, 9:00 a.m. in Tokyo on their Wednesday morning, the bottom was in. The gold price made a rather slow recovery from there…but rallied as soon as the noon silver fix was in, in London…and was back to unchanged by the Comex open. At that point a serious buyer showed up…and the usual not-for-profit sellers appeared around 9:20 a.m. Eastern. If they’d waited until the 10:00 a.m. London p.m. gold fix, the gold price would have been a very large number by that time, as there were no legitimate short sellers in sight. Gold’s high tick at 9:20 a.m. was $1,669.00 spot.
After that, the gold price got sold down until about half past lunchtime in New York…and then traded sideways for the rest of the day. The gold price finished the Wednesday session at $1,659.40 spot…up $1.10 from Monday…and would have finished materially higher if allowed to, which it wasn’t. Volume was fumes and vapours at around 55,000 contracts.
It was pretty much the same story in silver on the day before Christmas. Silver’s high tick on Monday came shortly after 9:00 a.m. in London…and then down it went, right along with the gold price, until 12:30 p.m. in New York. It recovered about a dime into an early close.
In Wednesday trading, silver traded within a dime of it’s Monday closing price right up until the noon silver fix in London…which turned out to be its low price tick over there. The subsequent rally continued right through the Comex open before running into the same set of not-for-profit sellers that gold did at 9:20 a.m. Eastern time
The high tick of the day [$30.32 spot] came shortly after that…and it was, as they say, all down hill until about half past lunchtime in New York…the same as on Monday. The silver price made another rally attempt from there, but got sold off after 3:00 p.m. in electronic trading.
Silver closed at $30.04…up twelve cents from Monday’s close. Net volume was a puny 14,500 contracts.