The low in Far East trading on Monday occurred shortly after the Hong Kong open…and lasted until precisely 4:00 p.m….which was 3:00 a.m. in New York. From there, gold got sold off about $10 in London trading. The low price of the day occurred less than 15 minutes before the Comex open. The rally that began from that point lasted through the entire N.Y. trading session…both Comex and electronic…with gold tacking on about $12 and almost closing on its high of the day. It was a pretty quiet trading session, and there wasn’t a lot of volume

In very early Tuesday morning trading in the Far East [still Monday evening in New York]…gold and silver saw their lows of the day. However, by the time that the Comex was open about 14 hours later, gold was up twelve bucks. But that was its high of the day, as the price was taken down immediately…and by the time that the Comex closed, eight dollars of that gain had been given back. Tuesday was a nothing day, really. The gold charts make it look worse than it really was…as most of gold’s move on Tuesday [and Monday, for that matter] can be chalked up to the gyrations of the US$.

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…

Once again, gold and silver mirrored each other’s price moves all through Thursday trading around the world. The high in the Far East in both metals was about 3:30 p.m. in Hong Kong…and from there, the trend was down. This trend picked up some steam about 10:00 a.m. in London and continued to accelerate to the down-side right through the Comex open. But around 8:45 a.m. in New York, gold and silver found a savior, as both metals turned on a dime…with gold picking up a hair over $20…and silver up 66 cents…from bottom-to-top during Comex trading.

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.

The gold price stayed within five bucks of $950 in Far East trading on Tuesday morning. The bottom for gold was in at 1:00 p.m. in Hong Kong. From there, it rallied a bit into the London open and then fell five dollars into the London silver fix. From there, a smallish rally began which ran into the usual New York not-for-profit sellers around 9:15 a.m. on the Comex.

Both gold and silver hit their high prices of the day during early trading in the Far East on Monday morning. Then, starting about 1:00 p.m. in Hong Kong, both gold and silver began to head south…and by the time I hit the sack shortly after the London open, gold was down about $7 and silver was down about 40 cents. I had visions of a total blow-out when I woke up yesterday morning, but was pleasantly surprised to find the worst was already past. The lows for both gold and silver were at the London p.m. gold fix…10:00 a.m. in New York. After that, gold managed to gain about $5…and silver was steady into the end of Globex trading…

As I mentioned in my closing comments yesterday, gold hadn’t done much in Far East trading and early London trading…but I also mentioned that this would change as the day wore on in London…and certainly once the Comex opened. Well…I was right about that…unfortunately.

Gold had tacked on about $8 by late Thursday afternoon in Hong Kong…which was shortly after the Thursday morning open in London. But four hours later [8:00 a.m. in New York], even this gain was gone. But from that point, however, both gold and silver began spirited rallies. These rallies lasted throughout the entire Comex floor session, but both traded sideways after that…which they’re still doing eight hours after the Globex close in New York. Here’s the current Kitco silver chart. The red line shows yesterday’s trading. You can see that all of the gains were during Comex hours in New York.

What if deflation wins? While we think the odds are strongly stacked against it, particularly given the government’s furious pace of money printing, the prudent investor understands – and respects – the time-tested adage, “Nothing is guaranteed.” So while our chips sit squarely on the spot marked “inflation,” what will happen to gold stocks if we’re wrong?