Great and Wonderful Thursday Morning Folks!
It looks like the Silver signal worked this time with the precious metals trading lower after the Federal Reserve’s partial ¼% rate cut with Gold’s trade at $1,418.30, down $19.50 after being dropped to $1,414.50 with the high at $1,428.60. Silver is leading the decline with its trade at $16.01, down 39.5 cents and close to the low at $15.955 and the high to beat at $16.305. The US Dollar benefited from the actions from the Fed Reserve with the Dollar’s value now at 98.64 up 38.2 points and close to the high at 98.70 with the low at 98.365 (We feel this should have gone in the opposite direction, and it will, in time). All of this activity happened way before my normal time of 5 am pst, the Comex open, and the London close.
Another note here is the closing of Silver and Gold’s trades at the Comex. The precious metals get closed out a half an hour before the Federal Reserve announcements, but the US Dollar (and all other currencies) stay open for another hours’ time after the Fed posting. The closing prices between real money and fiat have a 1 ½ hour spread in which the “closing price game” is played. Which is why we see more volatile movements in Silver and Gold, the day after the Federal Reserve’s announcement.
Our precious metals markets were not treated well in the emerging currency markets as Gold’s price under the Venezuelan Bolivar lost 251.69 in value with the price at 14,165.27 Bolivar, with Silver losing 4.594 with its price at 159.900 Bolivar. In Argentina, the Peso now has Gold priced at 62,149.20 A-Pesos proving a loss of 1,205.88 with Silver losing 21.362 with the price at 701.558 A-Pesos. Over in Turkey, the Lira now has Gold priced at 7,908.98 it too showing a loss of 68.09 in T-Lira value with Silver also down 1.737 with the Lira price at 89.2941.
August Silver Deliveries are up and running with the demand numbers at 553 fully paid for contracts and with a Volume of 10 posted up on the board so far this morning proving a drop in OI of 509. The trading range for the deliverables is between a high at $16.105 and the low at $15.895. It must be noted from Harvey Organ’s nightly updates that 188 August Contracts got delivered yesterday before the COMEX close at $16.345. So all those 188 purchases were done at the higher price before the Comex closed. It’s no longer odd to see this anymore since we started critiquing their delivery activities. Remember we have only a Volume of 10 so far, so this drop is nothing when based on the amount of contracts delivered when very few trade in the middle of the night.
Silver’s Overall Open Interest now stands at 236,523 Overnighters showing a loss of 2,743 obligations proving some traders have left the field of play which is still NOTHING compared to the amount of paper being used to play the game. We’re about ready to see how much strength the Resolutes really have and if they are still gauging the play against the paper.
England has decided not to move it’s interest rates for now as they continue on with Boris’s Brexit dance and President Trump is giving us Americans the signal that the Fed is not done with rate cuts yet when he said "As Usual, Powell Let Us Down". So we wait, with precious metals in hand, a positive thought in the head, and the idea that at least another rate cut will come. I will not able to post tomorrow but will be back in the saddle on Monday. So have a great weekend. Keep the thoughts positive, no matter what, and as always …