Here are the items of note that you should be following:
- JPM continues to vacuum up nearly all of the December Comex deliveries. Thus far this month, The JPM House account has stopped 4,284 of 4,469 December gold deliveries (95.9%) and 1,820 of 2,980 December silver deliveries (61.1%).
- Just as in July/August and October, when JPM was the primary stopper on the Comex, GOFO rates in London have turned negative. Today marks the third consecutive day of negative rates.
- The latest Bank Participation Report showed the most bullish extreme seen yet. The combined position of the 24 U.S. and non-U.S. banks surveyed showed a NET LONG position of 43,369 contracts, UP from 10,254 last month and exceeding by 30% the previous extreme seen in the survey from August 6 when the banks revealed a NET LONG position of 37,434.
Not surprisingly, price has turned… just as it did in July and October. The key going forward will be what happens when price encounters the red downtrend line on this chart. As we move toward the end of the year, this is the only short-term chart that matters.