China Buying the Dip - 28.652 Tonnes Delivered on the Shanghai Gold Exchange In One Day

The top of the chart is cumulative, the bottom portion is the daily volume.

Yesterday was easily the biggest day of this year for physical gold deliveries in Shanghai.

They may show themselves only in the longer term, but pricing action does develop profound physical market consequences for supply and demand.   History has proven that.


Related: Major Gold Price Divergence Between Shanghai and London

Gold Daily and Silver Weekly Charts - Non-Farm Payrolls Tomorrow

I have included the Comex delivery reports from yesterday for both gold and silver, because I thought that the volume and what the players were doing with it was interesting.

There will still much heavier deliveries for this new contract month as compared to the last, which is to be expected.

And it seems from looking at the details that the customers were disgorging their long positions and the bullion banks were snuffling them up for their house accounts.

In other words, we are in the rinse cycle of a wash and rinse.

For any number of reasons, the wiseguys like to really take something down before they let lose the dogs of the market forces and let it go up.  Let's see if it works out that way this time, which should start showing up next week some time.

Non-Farm Payrolls tomorrow, and the Italy vote over the weekend.

The Donald is out saving jobs in Indiana, and I will give him some credit for that, even though it maybe a bit overdone.  At least he is doing something about the real world economy, which the Dems would rarely do unless it involved the desires of a big donor.  The Dems would just feel their pain, and try to comfort those losing their jobs with the thought that it is for the inevitable cause of progress, or some other tawdry slogan like that.

I am wondering if all those donors to the Clinton Foundation can get their money back, now that the principals have been sidelined from the favor dispensing business.   And I wonder how Barry plans to cash in, now that his terms of service are over.  University president?  UN chieftain?  Hitting the book and speech circuits in the manner of the Clinton clan?   I doubt he will sully his hands with running an actual business, in which he has little experience, or apparent interest.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - A Tale of Two Economies

The Dow Jones 'Industrials' were heading to new all time highs, even as the techs continued to lead the declines to the downside, with the SP 500 going along for the ride.

The Dow is being supported by financials, since its days as an industrial indicator in any kind of Dow Theory are long over. As I have remarked before, the DJIA is the index for tourists, and local news programs.

The economic news was mixed, with unemployment higher than expected but some other industry indicators doing better.

This is going to keep becoming a tale of two economies.

Have a pleasant evening.

Charts at the Market Close on 'Hump Day' - Don't Worry Baby

"Sanders laid out the dilemma facing the Democratic Party. The Democrats must find their way back to a connection with ordinary people, and this will require a complete change in the way they do business. He's convinced that the huge expenditure of time and mental effort the Democrats put in to raise more than $1 billion for the Clinton campaign in the past year ended up having enormous invisible costs...

'I've seen it for years. I've seen a media, which has basically ignored the declining middle class, that doesn't talk about poverty at all, and has no sense of what is going on in the minds of millions of ordinary Americans. They live in a bubble, talk about their world, worry about who's going to be running 18 years from now for office. Meanwhile, people can't feed their kids. That's something I knew.

Talking about those issues, seeing that they resonated, that did not surprise me. How quickly they resonated did surprise me. How weak the Democratic establishment was, and how removed they were from the needs of ordinary people, that also surprised me.'"

Matt Taibbi, Bernie Sanders On Where We Go From Here


"There are two kinds of truth: the truth that lights the way and the truth that warms the heart. The first of these is science, and the second is art. Neither is independent of the other or more important than the other. Without art science would be as useless as a pair of high forceps in the hands of a plumber. Without science art would become a crude mess of folklore and emotional quackery. The truth of art keeps science from becoming inhuman, and the truth of science keeps art from becoming ridiculous."

Raymond Chandler

The economic news came in 'better than expected' this morning with Chicago PMI and the ADP Employment change beating estimates in particular.

The Dollar was stronger, and thereby we had some down moves in the precious metals priced in dollars.  This does not always happen, but depends upon the reason for which the dollar is stronger.

The warehouses were boring as usual.  I posted the first December delivery report last night which shows that we will likely see a 'livelier' month than we have had in November.

Non-Farm Payrolls looms on Friday, but do not forget about the Italian referendum on the weekend.

Trump is filling out his initial cabinet appointments.   It so far looks like he is not draining the swamp, but rather changing out one set of alligators for another.

And then there is the upcoming FOMC meeting in which one might be stunned if the Fed does nothing again.  Not necessarily anything useful or significant, but they will likely do something.

Have a pleasant evening.