It was no surprise to me to see gold and silver get sold off the moment that Globex trading began in New York at 6:00 p.m. Wednesday night. Sydney and Hong Kong both open for Thursday morning trading shortly after that, and this gives New York the opportunity to set the tone for trading in the Far East if they wish to do so. The Far East is not a big market [Don't forget that 90%+ of all gold and silver trading volume is during Comex hours in New York] and it can be shoved around quite easily, as volume is never very heavy. Note the bottom of the Kitco graph [below] where it shows the times that various world…

Gold did virtually nothing from the Globex open in New York on Tuesday evening…right through until the Comex open in New York on Wednesday morning.

Not much happened in gold on Tuesday. The top was in around 10:00 a.m. in London trading…just like Monday. From there it got sold off a bit…and the boyz in New York finished the job. Volume in gold yesterday was light…81,377 contracts less a switch effect of 4,870.

Despite a sharply rising US$ all through Far East, Europe and the Comex open…gold managed to stay within five dollars of its Friday closing price in New York. Gold and silver’s prices peaked at 9:00 a.m. in New York…when both had managed to claw their way into positive territory for the day. But once the London fix was in at 10:00 a.m. in New York, the rug got pulled out from under them.

The weekend news from every corner of the globe [especially Europe and Britain] was absolutely wretched…and gold and silver did exactly what one would expect the moment that trading began in the Far East on Monday morning…they took off to the upside. However, for some strange reason, gold couldn’t make it above $960…and shortly after London opened…the gold price was under pressure once again. Then, at precisely 9:00 a.m. in trading on the Comex in New York…the rug, once again, got pulled out from under the price. The gold price began to rally again the moment that London closed for the day, but got stopped dead in its tracks at half past lunchtime in New York.

Gold didn’t do much in Far East trading until later in the day in Hong Kong. A small rally started that got hit shortly after London opened. Every little rally attempt [including the little one in Hong Kong] got sold off by some not-for-profit seller before it could develop any legs to the upside. The top in the gold price was at the London open…and the low of the day was at the London close. From the London close, gold rallied about $15 right into the close of electronic trading on the Globex at 5:15 in New York.

o sooner had I sent in my Wednesday rant, when rallies began in both gold and silver shortly after London opened. The rallies really developed some legs once Comex floor trading got underway in New York. But, it all came to an end at the London p.m. fix. Then, shortly after London closed for the day, the New York bullion banks went to work and erased not only the wonderful N.Y. gains…but all the gains in London as well!

While the rest of the global banking system falls apart, Canadian banks are receiving the highest rankings as healthy, competitive stocks. Mark Skousen of Investment U says that superior bank stocks will soar when the markets recover. 

Both gold and silver had short, sharp rallies once Globex trading began in Sydney on Friday morning. Both were sold off immediately.

As expected, the Thursday morning rally at the Sydney open got snuffed out in short order. Gold remained flat in Hong Kong until 4:00 p.m. in their afternoon …3:00 a.m. in New York. Then the boyz showed up, and down gold went until the London open, a short rally got turned over, and the bottom for the gold price came at the London a.m. fix. From there it rallied gently until the London p.m. fix…and then away it went to the upside.