Gold pushed steadily higher from the far East through to the New York open on Tuesday, but the $939 peak was the high for the day as it sold off in fits and starts to just after noon, before regaining some lost ground over the final hours to close at $934.80/oz., up $6.80. Overnight, gold has fallen off.
The high water mark for gold occurred at 12:00 noon in Hong Kong on Monday. From there, gold shed about $7 by the time London had been trading for an hour. Gold gained almost all of that back in the rest of London trading…and up until precisely 9:00 a.m. in New York. Then a seller showed up…with another sharp sell-off the moment that London closed. From there, gold did nothing…except briefly tick down to its low of the day…$938.40. For a Monday, volume was very light…and [according to the usual N.Y. commentator] “saw estimated volume of only 84,287 lots which, if it is not radically revised, suggests Monday was the quietest Comex day in quite some time.” The US$ was up…
In the currency market, the dollar soared against the euro. Late Monday, the euro was trading at $1.378 vs. $1.4022 on Friday.
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The bond vigilantes have spoken. They’ve cried in a powerful chorus, “Ehhh… we’re a little annoyed.”
Both gold and silver rose and fell together in fits and starts all through Far East and early London trading on Wednesday. Both metals went vertical the moment [or very shortly after] the London silver fix at 12:00 noon in London…7:00 a.m. in New York. Someone obviously didn’t like that, and both metals were under serious selling pressure immediately.
Gold had another pretty blah day on Tuesday, rising early in the Hong Kong session, falling below $950 at the mid-point of London trading, bouncing back over $960 by mid-morning, then dropping back to $955 and hugging that mark through the rest of the day, to finish at $954.60/oz., up $4.00. Overnight, gold is trending higher.
As near as we can make out, Tim Geithner’s trip to Beijing was, at best, a draw. He told his soothing lies. China listened. The markets reacted favourably.
It was another stellar day for all the precious metals yesterday…gold, silver platinum and palladium. Gold was up a hair over two percent…and the other three metals were up four percent plus.