-- Posted Monday, 30 August 2004 | Digg This Article
Market Analysis from CapitalUpdates.com:
Light volume continues to dominate the markets as disappointing economic data dragged the major indices lower and gave strength to gold.
U.S. July Spending Increases 0.8%; Incomes Rise 0.1% “U.S. consumer spending rose 0.8 percent in July and incomes showed the smallest increase since November 2002, a sign that job gains may have to accelerate to sustain Americans' appetite for shopping.” These most recent numbers show that Americans continue to spend more than they earn and put themselves further into debt. Personal Income was expected to rise 0.5% versus its actual 0.1% as Personal Spending was expected at only 0.7% versus the actual 0.8%.
Oil had a mixed day, finding strength early on attacks in Iraq that cut exports from southern oil fields. Later reports downplayed that damage and the recent bear market psychology in oil took hold and brought the price of oil back down. Also today was Yukos reporting that they “would be able to cover only half of its $3.4 billion back tax bill by its deadline at the end of August but it would continue making payments in September.” If the same news reported today would have been reported two weeks ago, oil would have been up at least $1. Instead, the recent trend has been oil back down, and that trend is likely to continue until oil falls back down to $40. The question then is if oil will continue to trend lower, or make a new assault for $50 and beyond. The continuous contract for oil closed down $0.90 to $42.28, its lowest closing price in over a month.
The ten year Treasury note yield fell to 4.188% from 4.227% as the September 2004 U.S. Treasury bond gained 0.42% to 111 26/32.
The Dow, Nasdaq, and S&P closed near their daily lows despite oil dipping below $42 at one point today as earnings warnings and disappointing economic reports dragged the markets lower. The Dow lost 0.71% to 10122.52, the Nasdaq lost 1.37% to 1836.49, and the S&P lost 0.78% to 1099.15.
The U.S. dollar index fell 0.18 points to 89.64 after briefly trading above 90. The euro index gained 0.39 points to 120.56 as it starts to bounce off the 120 level and the yen lost 0.25 points to 90.93.
Gold & Silver Report from GoldSeek.com & SilverSeek.com:
Gold Warehouse Stocks: | 4,823,852 | - |
Silver Warehouse Stocks: | 109,311,380 | - |
Gold and silver were up nicely at the New York open today as the disappointing economic reports were released before falling off a bit after midday. Gold gained $4.70 to $407.60 and silver gained $0.13 to $6.71.
The XAU and HUI were up about 1% early, but were then dragged down as the major indices headed sharply lower. The XAU lost 1.61% to 92.85 and the HUI lost 1.55% to 202.13.
Gold & Silver Stock News Update from GoldReview.com:
Hecla Mining, Newmont, Goldcorp, and Durban Roodepoort Deep were among the big names in the gold and silver mining industry making headlines today; get the full stories at http://www.goldreview.com/.
- Written by Chris Mullen
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-- Posted Monday, 30 August 2004 | Digg This Article
Gold Seeker Closing Report – August 30, 2004
