NOTE: I will be on the road most of next week…and will be writing my column on my laptop, which is an ordeal that I put myself through as few times a year as possible. They will also be as short as I can make them…and the ‘Critical Reads’ section will shrink alarmingly during this time period.
The gold price didn’t do a lot for most of the trading day in the Far East on Friday, but starting around 3:00 p.m. Hong Kong time, the price developed a negative bias…and shortly before 1:00 p.m. in London, the decline began more severe. About forty minutes later…shortly after 8:30 a.m. in New York, it had hit its low tick of the day, which Kitco reported as $1,602.80 spot.
The subsequent rally lasted until 10:15…and the price sagged a bit from there until shortly before 2:00 p.m. Eastern. The gold price gained a couple of dollars from there going into the 5:15 p.m. electronic close.
In actual fact, it was all a tempest in a teapot, as volume was very light once again yesterday…around 84,000 contracts net, the same as Thursday’s volume. The gold price closed at $1,609.20 spot…down $5.60 on the day.
Silver opened virtually on its high of the day at the beginning of Far East trading on Friday…and was down about twenty cents to the $29 spot price just minutes before 8:30 a.m. in New York.
Less than ten minutes later, the price had cratered by about 40 cents…and from there, the price pattern was almost identical to gold’s, with the only minor difference being the fact that the absolute low tick [$28.45 spot] came on a quick spike down at 12:15 p.m. Eastern time.