Happy Friday Morning Folks,
Gold got Comex Paper thrown at it yesterday but has fully regained its strength and has turned to the positive with December Gold’s trade at $1,433.00 up $5.50, close to the high at $1,433.60 with the low at $1,426.40. As a side note, commodity trading requires following the highest open interest when quoting a price because that specific month is where all the trades focus. September Silver (still has the highest OI) is trading at $16.52, up 10.9 cents and has fully regained all of yesterday’s attempt to weaken the value with the high at $16.53 and the low at $16.355. The US Dollar’s value now stands at 97.65, gaining 9.8 points as the entire week proved the Dollar had gained in value with today’s high at 97.68 and the low at 97.505. All this was done somewhere around the 5 am pst mark, before the Comex open, and the London close.
Our emerging markets overview is still showing pressure on the metals with Venezuela’s price for Gold now standing at 14,312.09, regaining 20.98 in Bolivar value with Silver now at 164.994 down another 1.049 Bolivar so far today. In Argentina, Gold is pegged at 62,099.77 showing a gain of 817.95 Pesos with Silver at 715.893 giving us a gain of .823 in A-Peso value. Over in Turkey, the Lira has Gold priced at 8,074.77 still losing 64.02 in value with Silver at 93.0770 it too losing 1.4587 of T-Lira value. It must be remembered that the Gold prices posted here in the emerging markets currencies, do not have the carry trade costs added like it is in the December Comex price. In short, the loses would be deeper than posted. But that will correct as we move forward in time.
July Silvers delivery period is just about over. The demands for physical now stand at 77 fully paid for contracts waiting for receipts, giving us a drop in count of 36 contracts, either getting their physicals here, or getting the paper transferred over to London. So far this morning there is no Volume posted and we have no trading range to deal with either. What we do have from yesterday is a Volume of 64 at the same time only 36 contracts got receipts giving us the “possibility” the Resolute Buyer(s) is/are still sucking up the physicals by adding contracts on top of their already existing orders. Silvers overall Open Interest now stands at 235,155 Obligations showing a 1,350 count loss as the shorts dipped the price in order to weaken their obligations on options expiration day that only took out 1,300+ Call options in Silver but had to deliver upon even more deeper in the money Calls. Of note, the last trading day for July is Monday then we start to focus on August’s deliveries with its count now at 1,146.
Yesterday, the DOJ posted their court proceedings; Former Precious Metals Trader Pleads Guilty to Attempted Commodities Price Manipulation, giving us a break down of the accusations of further manipulations within the prices of precious metals during the time the CFTC was supposed to be fully active in the search for price fixing when Bart Chilton had a seat at the CFTC. Chris Marcus writes for Miles Franklin and has posted one heck of a good follow-up of the events that had occurred and with Bart Chilton himself being interviewed (may God Bless our hidden hero). We consider this a must read because it timelines some things that have been used against the prices of precious metals.
After reading all the stories about these confirmed International accusation over the past years (this most recent one now includes a U.S. and Canadian bank), I also look at the language used and by certain parties too. Imo, only the main stream media writers talk about how helpful the CFTC was, in bringing in these lawbreakers, who are under their jurisdiction, into the courts. It’s as if the writers are suggesting the CFTC did most of the work and handed over their findings to the DOJ. Yet in the most recent DOJ write up, the very last sentence in the very last paragraph used the initials CFTC with the words “provided assistance”. Knowing how the media loves to use large brushes and paint to fabricated obscure ideas to hide the truth, I have to challenge the idea the CFTC helped. I actually think they too are under investigation just like the FBI and the CIA. Just a thought, and I’ll leave room for being way off, but I do think if the CFTC is actually not under investigation, they should be. With William Barr holding the AG chair, this could really be a thing.
One day, the story line and prices will lead the way as more and more evidence is surveyed and proven in the courts. Regardless, the precious metals has a Resolute Long and they refuse to exit after all the attempts were made these past few years. Have a great weekend, enjoy the show, keep a positive attitude in the head no matter what, and as always …