From Ed Steer:
Yesterday's gold activity in world-wide trading on the Globex amounted to almost nothing. Volume was even lighter on Tuesday (which was a regular work day) than on Monday (which was a holiday). There wasn't much to read into the price activity. What little price excitement there was in either metal, got squashed moments after the Comex opened when the silver price went vertical.
However, the open interest numbers yesterday are well worth noting. I would think that these numbers represent Monday's trading and most of Friday's as well...as the o.i. numbers for Friday that were in my report on Tuesday morning...simply made no sense. With Monday being a holiday, the open interest numbers that were available probably didn't represent all the trading that went on. These most likely do. Gold o.i. fell another 11,463 contracts and silver o.i. contracted a further 4,056 contracts. It's been many moons since the o.i. has been at these levels in either metal. We are at the bottom of the barrel, and Friday's COT numbers will be worth printing off and saving for posterity...which is exactly what I'm going to do.
In gold news, the ECB reported that two of its captive banks had sold 7.59 tonnes of gold last week. And once again there were rumblings that the IMF's gold has been surreptitiously put into play....plus rumours of a non-signatory to the Central Bank Gold Agreement selling gold. If I had a dollar for every time I've heard the story about IMF gold sales, I wouldn't have to worry about what the price of gold and silver did, as I could retire on that alone. I also note that (despite the price trashing) GLD added 100,000 ounces on Friday.
Above is a graph that was in Bill Murphy's MIDAS commentary over at lemetropolecafe.com yesterday. It's data from the Office of the Comptroller of the Currency showing which American banks hold all the precious metals derivatives as of June 30/08. I get quite a few enquiries as to the identities of the '2 or 3' US banks that are holding the biggest gold and silver short positions on the Comex. This graph should tell you all you need to know. Both are market-making members of the LBMA as well.
Wednesday, October 15, 2008
FROM CASEY RESEARCH'S DAILY EMAIL (FREE)
From Ed Steer:
Yesterday's gold activity in world-wide trading on the Globex amounted to almost nothing. Volume was even lighter on Tuesday (which was a regular work day) than on Monday (which was a holiday). There wasn't much to read into the price activity. What little price excitement there was in either metal, got squashed moments after the Comex opened when the silver price went vertical.
However, the open interest numbers yesterday are well worth noting. I would think that these numbers represent Monday's trading and most of Friday's as well...as the o.i. numbers for Friday that were in my report on Tuesday morning...simply made no sense. With Monday being a holiday, the open interest numbers that were available probably didn't represent all the trading that went on. These most likely do. Gold o.i. fell another 11,463 contracts and silver o.i. contracted a further 4,056 contracts. It's been many moons since the o.i. has been at these levels in either metal. We are at the bottom of the barrel, and Friday's COT numbers will be worth printing off and saving for posterity...which is exactly what I'm going to do.
In gold news, the ECB reported that two of its captive banks had sold 7.59 tonnes of gold last week. And once again there were rumblings that the IMF's gold has been surreptitiously put into play....plus rumours of a non-signatory to the Central Bank Gold Agreement selling gold. If I had a dollar for every time I've heard the story about IMF gold sales, I wouldn't have to worry about what the price of gold and silver did, as I could retire on that alone. I also note that (despite the price trashing) GLD added 100,000 ounces on Friday.
Above is a graph that was in Bill Murphy's MIDAS commentary over at lemetropolecafe.com yesterday. It's data from the Office of the Comptroller of the Currency showing which American banks hold all the precious metals derivatives as of June 30/08. I get quite a few enquiries as to the identities of the '2 or 3' US banks that are holding the biggest gold and silver short positions on the Comex. This graph should tell you all you need to know. Both are market-making members of the LBMA as well.
