GOLD AND SILVER BREAK THROUGH RESISTANCE: GOLD FINISHES UP $16.95 TO $1309.65

by Harvey Organ, Harvey Organ Blogspot:

SILVER ENDS UP 38 CENTS AT $17.45/HURRICANE HARVEY UNLEASHES HAVOC ON HOUSTON AND SURROUNDING TOWNS/HOUSTON IS FLOODED/THE HURRICANE HAS RETREATED BACK ONTO THE GULF AGAIN AND IT MAY REPEAT ON THE LOUISIANA AND TEXAS BORDER/CHINA VOICES HER ANGER AT THE USA FOR SANCTIONS AGAINST VENEZUELA/

GOLD: $1309.85  UP $16.95 *BREAKS RESISTANCE OF $1300.00

Silver: $17.45  UP 38 CENTS *BREAKS RESISTANCE OF $17.25

Closing access prices:

Gold $1310.40

silver: $17.46

SHANGHAI GOLD FIX:  FIRST FIX  10 15 PM EST  (2:15 SHANGHAI LOCAL TIME)

SECOND FIX:  2:15 AM EST  (6:15 SHANGHAI LOCAL TIME)

SHANGHAI FIRST GOLD FIX: $1299.64 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME:  $1204.25

PREMIUM FIRST FIX:  $5.38

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SECOND SHANGHAI GOLD FIX: $1300.33

NY GOLD PRICE AT THE EXACT SAME TIME: $1295.03

Premium of Shanghai 2nd fix/NY:$5.03

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LONDON FIRST GOLD FIX:  5:30 am est  $closed/holiday

NY PRICING AT THE EXACT SAME TIME: $xxx

LONDON SECOND GOLD FIX  10 AM: $closed/holiday

NY PRICING AT THE EXACT SAME TIME. xx

For comex gold:

AUGUST/

NOTICES FILINGS TODAY FOR APRIL CONTRACT MONTH: 38 NOTICE(S) FOR  3800  OZ.

TOTAL NOTICES SO FAR: 4622 FOR 462,200 OZ  (14.376 TONNES)

For silver:

AUGUST

 

 70 NOTICES FILED TODAY FOR

 

350,000  OZ/

Total number of notices filed so far this month: 1248 for 6,240,000 oz

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Today both gold and silver broke through huge resistance levels. Gold broke through $1300.00 to end up $1309.85 and silver broke through $17.25 to end up at $17.45.  The big news of the day was the catastrophe in Houston which is flooded.  Damages is expected to exceed $40 billion. Now the big question: how will this be funded if the debt ceiling is not raised? The Hurricane has reversed course and it is now back into the Gulf.  It looks like it will pick up huge moisture and head back to the Louisiana-Texas coast for another shot at damage.

Let us have a look at the data for today

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In silver, the total open interest FELL by A TINY 248 contracts from 188,413 DOWN TO 188,145 DESPITE THE RISE IN PRICE THAT SILVER UNDERTOOK WITH  FRIDAY’S TRADING (UP 9 CENTS).WHEN WE LOOK OVER OUR SHOULDER AND SEE THE HUGE RISE IN OI IN GOLD DUE TO THEIR FAILED RAID, ONE WOULD EXPECT TO SEE THE SAME FOR SILVER. YOU WILL RECALL ME TELLING YOU THAT SOME OF THE PAPER PLAYERS (WHO HAVE NO DESIRE FOR PHYSICAL DELIVERY) ONCE WE APPROACH AN ACTIVE DELIVERY MONTH LIKE SEPTEMBER, WOULD TENDER SOME OF THEIR LONGS FOR EFP’S WHICH GIVES THEM A FIAT PROFIT AND A DELIVERABLE PRODUCT PROBABLY A LONDON BASED FORWARD. THE ISSUANCE OF EFP’S DESTROYS THE PRICE DISCOVERY MECHANISM BECAUSE WE HAVE NO PHYSICAL PRICE ANYWHERE IN THE EQUATION. THIS TRANSFER IS ALLOWED SUPPOSEDLY FOR EMERGENCY USE ONLY WHEN PHYSICAL  DELIVERY CANNOT TAKE PLACE AT THE COMEX.  HOWEVER OUR BANKERS MISUSE THIS VEHICLE TERRIBLY. FRIDAY’S FAILED RAID CAUSED NEWBIE LONG PLAYERS INTO THE ARENA AND THAT IS WHY WE HAD ONLY A SMALL LOSS IN OI INSTEAD OF THE MUCH LARGER AMOUNTS WE GENERALLY SEE JUST PRIOR TO FIRST DAY NOTICE. THE BANKERS STILL CARRY THE OBLIGATION TO DELIVER ON THESE EFP’S TO LONDON OR OTHER PHYSICAL EXCHANGES. THE BANKERS INITIALLY SUPPLIED THE SHORT PAPER BUT IMMEDIATELY TRIED TO COVER WHEN THEY REALIZED THE RAID WAS A FAILURE.  SOME SPECS SOLD FOR A PROFIT AT THE HIGHER PRICE

RESULT: A SMALLER LOWER OI WITH A GOOD PRICE INCREASE AND AN UNSUCCESSFUL RAID.

 In ounces, the OI is still represented by just UNDER 1 BILLION oz i.e.  0.940 BILLION TO BE EXACT or 134% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MAY MONTH/ THEY FILED: 70 NOTICE(S) FOR 350,000OZ OF SILVER

In gold, the open interest ROSE BY A CONSIDERABLE 5,335 CONTRACTS WITH THE RISE  in price of gold ($6.00 GAIN ON FRIDAY .). The new OI for the gold complex rests at 514,546.

AS IN SILVER, THE GEOPOLITICAL LANDSCAPE WITH TRUMP THREATENING TO CLOSE GOVERNMENT IF HE DID NOT GET HIS WALL AND THE DOVISH SPEECHES BY BOTH DRAGHI AND YELLEN, CAUSED A HUGE NUMBER OF NEWBIE SPECS TO AGAIN ENTER THE GOLD ARENA WITH THE COMMERCIALS SUPPLYING THE NECESSARY PAPER. FRIDAY MORNING WITNESSED A MASSIVE 2 MILLION OZ OF PAPER SHORTS SUPPLIED BY OUR BANKERS. HOWEVER THIS RAID AGAIN BECAME TOTALLY UNSUCCESSFUL. THE BANKERS REALIZING ANOTHER FAILURE IN THEIR ATTEMPT TO CONTAIN PRECIOUS METAL PRICES, TRIED TO COVER IN HURRY AND PROBABLY TO NO AVAIL .

Result: A GOOD SIZED GAIN IN OI with A FAIR RISE IN PRICE IN GOLD AND AN UNSUCCESSFUL RAID.

we had: 38 notice(s) filed upon for 3800 oz of gold.

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With respect to our two criminal funds, the GLD and the SLV:

GLD:

Late Friday night , we had a big  change in gold inventory: a deposit of 5.91 tonnes into the GLD inventory

Inventory rests tonight: 805.20 tonnes

IN THE LAST 31 TRADING DAYS: GLD SHEDS 31.77 TONNES YET GOLD IS HIGHER BY $77.30 .

SLV

Today:  WE HAD NO CHANGES IN SILVER INVENTORY TONIGHT:

INVENTORY RESTS AT 333.178 MILLION OZ

 

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.

First, here is an outline of what will be discussed tonight:

1. Today, we had the open interest in silver FALL BY 248 contracts from 188,413 DOWN TO 188,145 (AND now A LITTLE FURTHER FROM THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) WITH FRIDAY’S 9 CENT GAIN IN TRADING. SILVER RESPONDED TO THE GEOPOLITICAL CLIMATE WHEREBY TRUMP THREATENED TO SHUT DOWN GOVERNMENT UNLESS HE GOT HIS WALL PLUS THE TWO DOVISH SPEECHES BY YELLEN AND DRAGHI AT JACKSON HOLE. SOME PAPER PLAYERS TENDERED SOME OF THEIR LONGS FOR SEPT. EFP’S BUT THAT OBLIGATION STILL RESTS WITH THE BANKERS BUT ON A DIFFERENT EXCHANGE  (LONDON).  SO AT THE COMEX THE GAIN IN OI FROM THE NEWBIE LONGS ENTERING THE CASINO COUNTERBALANCED THOSE LONGS LEAVING FOR EFP’S

RESULT:  A SLIGHTLY LOWER OI AT THE COMEX, WITH A HIGHER PRICE. (AND A GAIN IN DELIVERABLE PRODUCT IN LONDON)

(report Harvey)

.

2.a) The Shanghai and London gold fix report

(Harvey)

 

2 b) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY:  Bloomberg

3. ASIAN AFFAIRS

 i)Late SUNDAY night/MONDAY morning: Shanghai closed UP 31.30 POINTS OR 0.93%   / /Hang Sang CLOSED UP 15.13 POINTS OR 0.05%/ The Nikkei closed DOWN 2.71 POINTS OR 0.01%/Australia’s all ordinaires CLOSED DOWN 0.55%/Chinese yuan (ONSHORE) closed UP at 6.6230/Oil DOWN to 47.44 dollars per barrel for WTI and 52.60 for Brent. Stocks in Europe OPENED RED. Offshore yuan trades  6.6253 yuan to the dollar vs 6.6230 for onshore yuan. NOW THE OFFSHORE MOVED SLIGHTLY WEAKER  TO THE ONSHORE YUAN/ ONSHORE YUAN MUCH STRONGER (TO THE DOLLAR)  AND THE OFFSHORE YUAN IS MUCH STRONGER TO THE DOLLAR AND THIS IS COUPLED WITH THE WEAKER DOLLAR. CHINA IS HAPPY TODAY