Gold trading:

Hi Bill,
For the last six months or so there has been a marked difference between the manner that gold trades on Fridays (Comex) versus the earlier days of the week.

I constructed the 5 graphs in the inset below using Comex closing price data points for the last 3 years. A given graph over time will portray the compounded gold price gains or losses for the particular day of the week that it represents. Monday gains/losses are linked only to prior Monday gains/losses, Tuesdays are linked to Tuesdays, etc. In this fashion, it is duck soup to compare the relative performance of the gold price on any day of the week to the performance on any other day of the week (over time periods).

Immediately apparent is the out-performance of the gold price on Fridays for the last 6 months. For the last three months, Thursday gold price performance has also been impressive. Remarkably, there has been a net loss in the gold price Tuesdays for the entire ~$400 advance. The clear trade here is to buy the Tuesday close and sell the Friday close.

The graphs below reflect gold trading through Monday (11/12) of this week. The dark blue line drop records today’s near $30 loss.
midas11.gif

The next graph portrays day-of-the-week price performance in silver (Comex) over the last six years. Fully $5 of silver’s price advance has taken place on Fridays. Similar to gold performance, Tuesday silver performance shows a net loss of over $1 (while silver has appreciated by ~$10):

midas22.gif

Lastly, my metals portfolio (which is a reasonable proxy for the HUI) shows that gold and silver equities perform best over time on Wednesdays, Thursdays and Fridays and worst on Mondays and Tuesdays. The center line is break-even. The graphs reflect data since July of 2005. As with gold trading, buying equities on Tuesday closes and selling on Friday closes would have been the optimal strategy this past year.

midas33.gif

Go GATA,
Brent