Great and Wonderful starting of the Triple Witch Week Folks,
We start the banker’s financial inventory week with Gold at $1,244.00, up $2.60 and at the high with the low at $1,239.40. Silver is following the noble metal with its price at $14.70 an ounce with a high at $14.71 and the low at $14.62 with our trading ranges become tighter and tighter as we wait for the end of the day to see the closeout and rollover of all Decembers currencies traded at the CME with the last month of the year’s US Dollar value at 97.155, down 27.5 points with a low at 97.145 and the high at 97.47. Of course, all this being done some time way before 5am pst. Maybe the tightness that is seen in the precious metals is part and parcel to the events of our commodities markets evening trades when the CME group had err … issues to deal with almost all night long. Venezuela is keeping the focus real as the currency conversion for Gold is now at 12,424.45 Bolivar up 22.97 with Silver at 146.816 gaining 34.9 Bolivar over the weekend. One day, we’re going to see these price swings in US Dollar terms.
The December delivery count is as static as the volatility in today’s precious metals early morning movements, with the delivery count at 303 contracts equaling the same count as Friday mornings report with a volume of 5 posted so far this morning. Silver’s overall Open Interest shows a count at 174,446 contracts losing 374 obligations as the shorts keep the prices static and maybe the most recent reason being the Triple Witch Week with the FOMC Meeting and interest rate increase that has been negatively advertised since the last FOMC gathering. The bonds have reversed course since the last blather gather showing the debt markets inverting, possibly proving the point that bank loans between each other are drying up quickly or have died already. It’s all about the trust at that level. Eventually, it will show up at the retail level and that too maybe happening now as the Baltic Dry Index proved to be the early indicator last month.
All of Europe seems to be wearing yellow these days as the main stream media refuses to post the real at the same time the social media groups are clouding facts with fake (ANTIFA and a few other fakery groups being reported there), with the intentions of disproving what we are all visually seeing. But then, on occasion we see something that tells us the flames under that long and slow burn of a boiling pot is showing up in the EU parliament as a Yellow Jacket pops up with applauds as the Italian MEP holds up a Yellow Vest in EU Parliament. (and saying) " I Join the Protests - WAKE UP" !!
Not only is the Italian population standing against the giant, but so are the people of France, who are trying to raise the awareness bar even more so by spraying their government buildings with bullshit hoping to balance out the government’s bullshit with the real. One makes food, the other makes slaves, which one will win when the people are starving? Of course, in typical comic fashion, The EU poodle, Macron is blaming Russia once again as … “the French public are incensed by (the) mounting economic hardship under the government of Macron, the former investment banker who wants to gut workers’ rights and social benefits under the euphemism of “reforms”. This is 5 weeks of rage against the machine in France, and the Yellow Jackets are popping up everywhere with our picture of the day supposedly taken in Belgium over the weekend.
Today is the closeout of the December currencies as the banks and traders rollover into the March contracts. Also of note, the short term 90 day Eurodollar comes off the board with the rest of the week’s actions closing out and reinstituting newer swaps and hedges not only in all debt instruments, but the paper markets as well. With the CME having trading issues including the accusations that “most traders (are) seeing their orders canceled, some have managed to see sporadic execution”, the commotions may actually help the movement in the precious metals, after all, the Bond Market Has Frozen: For The First Month Since 2008, Not A Single Junk Bond Price is being bought, in Europe the market appears to have already locked up and the inversion of debt rates could, once again, prove loans between the banks have dried up as Global Stock Rally Fizzles As Europe is Slammed By a "Retail Apocalypse".
Comex Silver and Gold prices should have spiked already because of the rise against the machine in Italy, France, and all of the Northern Mediterranean nations. Of course the algos are unemotional and that could be their folly, but with the drying up of loans and the inversion of debt ratios, something has to give, and in time it will. It going to be loud and messy within the markets. What a perfect time to be holding precious metals in hand, with a positive attitude in the head, no matter what is going around you. Have a great and wonderful day and as always ….
Stay Strong!
J. Johnson