North American Nickel’s latest news from our 100% owned Post Creek property in the Sudbury mining camp is what geologists always hope for….a large, clearly defined, un-tested target close to surface in a known camp with excellent infrastructure advantages for mining. Drilling is scheduled to begin in September. In this case it’s an EM anomaly 200 m long, that has been interpreted as the electromagnetic signature of ‘near-massive to massive sulphide.’ It’s located approximately 55 m below surface and the trend of the anomaly corresponds, in part, to both the CJ#1 dyke and the Whistle Offset Structure to the south. Please visit our website to read the full news release and learn more about North American Nickel. Sponsor Advertisement Today we get the eagerly anticipated Commitment of Traders Report for positions held at the close of Comex trading on Tuesday.It was a nothing sort of day on Thursday. The low price tick [around $1,586 spot] came shortly after 11:00 a.m. in London…and from there the price rallied to its high of the day…$1,603.10 spot…which came at the London p.m. gold fix at 10:00 a.m. Eastern time right on the button. From there it got sold off into the close. It was obvious, at least to me, that gold would have closed well above the $1,600 mark if it had been left to its own devices…which it wasn’t.Gold finished the Thursday trading session at $1,593.40 spot…down $4.00 from Wednesday’s close. Net volume was around 114,000 contracts…a 60% decline from Wednesday.Silver’s price in Far East trading was more ‘volatile’…but had recovered to just above unchanged by the London open. Then minutes after 9:00 a.m. BST, silver got sold down to it’s low of the day…which came shortly after 11:00 a.m. BST…the same as gold’s low price tick.Then, also like gold, it rallied to its high of the day [$29.58 spot] at the London p.m. gold fix at precisely 3:00 p.m. local time…10:00 a.m. in New York. From there it got sold off hard into the close of electronic trading at 5:15 p.m. Eastern time. Silver, too, would have closed significantly higher if it hadn’t run into selling pressure after the London p.m. fix.As it was, silver closed at $29.04 spot…down 23 cents from Thursday’s close. Net volume was only 31,000 contracts.The dollar index didn’t do much of anything…spending almost all of the Thursday trading day barely above the 80.00 mark.Not surprisingly, the precious metal shares peaked shortly after the highs at the London p.m. gold fix at 10:00 a.m. Eastern time. From there they fell all the way back into negative territory…and basically traded sideways into the close, but the HUI managed to finished slightly in the black…up 0.33% on the day.The silver stocks were mixed once again…but finished marginally higher. Despite that, Nick Laird’s Silver Sentiment Index closed down a smallish 0.15%.(Click on image to enlarge)The CME’s Daily Delivery Report showed that 21 gold and 47 silver contracts were posted for delivery on Monday…and the link to the Issuers and Stoppers Report is here.The GLD ETF reported that an authorized participant deposited 67,961 troy ounces of gold yesterday…and there were no reported changed in SLV.The U.S. Mint had a small sales report yesterday. They sold 1,000 ounces of gold eagles…and another 75,000 silver eagles. Month-to-date the mint has sold 31,500 ounces of gold eagles…1,000 one-ounce 24K gold buffaloes…and 435,000 silver eagles. I’m underwhelmed.Over at the Comex-approved depositories on Wednesday they reported receiving 101,993 troy ounces of silver…and shipped 801,311 ounces of the stuff out the door. The link to that action is here.Nick Laird, who lives on the edge of the tropical jungle near the coast in north central Australia, sent me these two photos from around his yard. Creepy-crawlies like this Green Tree Snake…and this Bat Flower are pretty standard fare in his location.(Click on image to enlarge)(Click on image to enlarge)While on the subject of Nick Laird, here’s his “Gold Price Oscillator” chart that he sent me in the wee hours of this morning…and he’s not at all happy with what it shows…and this is what he had to say about it…”This indicator over the last five years has given some of the most brilliant buy signals of all the charts I have. On each of the buy signals the markets ended up considerably higher many months later. Now it has just given a sell signal.”“I don’t know what will follow, but I think we’ll find out soon enough. New lows won’t surprise me now. Sub $1,500 is a good possibility.”“But I want to add the caveat that we could still bottom between here and the low in December…and if we bottom in the next $30 and then move higher then the low in December…that will validate it as the low. If we break that low, then yes, it could get ugly.”(Click on image to enlarge)I have the usual number of stories for you today. The final edit is up to you.If I asked you to leave something for your great grandkids in a package to be opened one hundred years from now, would you leave them a wad of hundred dollar bills or one hundred gold coins? If you had any brains you would pick the gold coins. I’d venture that Warren Buffet would also pick the coins. Why? Because we know that one hundred years from now the gold coins would represent value and purchasing power and the dollar might not exist. End of story. – Richard Russell…04 May 2012There’s not a lot to talk about with yesterday’s price action in either gold or silver. It’s obvious from the charts of both metals, that the rallies that began at 11:00 a.m. in London got smacked once the London gold fix was in.Here are the 3-year charts for all four of the precious metals. As you can see from the RSI plot, we are at…or approaching…the most oversold conditions of the last three years in all these metals…and as I said yesterday, one has to wonder how much more downside price action there is left.(Click on image to enlarge)(Click on image to enlarge)(Click on image to enlarge)(Click on image to enlarge)In Far East trading on Friday, not much happened until 9:00 a.m. Hong Kong time. Then the high-frequency traders showed up and began moving the price lower…tripping sell stops along the way. As I write this paragraph [and the next] at 4:04 a.m. Eastern time, silver has once again hit new lows for this move down…and is currently down 50 cents from Thursday’s close. It was precisely the same price pattern in gold, starting at precisely the same time. The gold price has hit new lows for this move down as well…and at the moment, gold is down about seventeen bucks from Thursday’s closing price in New York.Volume, which had been reasonably light right up until about an hour before the London open, has now picked up substantially in both metals. The dollar index is up about 6 basis points at the moment, so this engineered sell-off has nothing to do with whatever may be going on in the currency markets in late Far East or early London trading.Today we get the eagerly anticipated Commitment of Traders Report for positions held at the close of Comex trading on Tuesday…and whatever improvements in the Commercial net short position it shows in both silver and gold, it’s already out of date. With the new lows set on Wednesday, plus these new lows set so far during the Friday trading session, it’s a sure bet that the internal structure of the COT Report has improved further. It’s just a matter of how much of that improvement has come from technical fund long liquidation…and further shorting by these same technical funds.And as I hit the ‘send’ button at 5:20 a.m. Eastern time, gold has recovered off its earlier 8:30 a.m. London low…as has palladium and silver…but platinum has just set a new low in the last few minutes. Gold volume is up about 25 percent in the last hour or so…and silver’s net volume has almost doubled…and is well north of 8,000 contracts.Needless to say, I’m rather apprehensive about what the Comex trading session will bring when it begins at 8:20 a.m. Eastern time this morning. From what’s been happening so far this Friday in the Far East and London markets…it could, as Nick Laird said, “get ugly”.Have a good weekend…and I’ll see you here on Saturday sometime.