-- Posted Wednesday, 8 September 2004 | Digg This Article
Market Analysis from CapitalUpdates.com:
Greenspan: Economy Regaining Traction:
“The U.S. economy is pulling out of a June soft patch and picking up steam, Federal Reserve chief Alan Greenspan said on Wednesday in remarks economists saw as cementing a September interest-rate rise. "The most recent data suggest that, on the whole, the expansion has regained some traction," the central bank chairman told the House of Representatives Budget Committee. Financial markets focused on Greenspan's sanguine take on inflation, which traders said cast some doubt on rate increases later in the year -- setting the euro surging against the U.S. dollar and pushing Treasury bond prices higher.”
Greenspan’s upbeat view of the economy, even with recognizing higher energy costs, did little to enthuse those on Wall Street, but his talk on inflation did give some light to precious metals.
Greenspan’s comment were for the most part backed up with the release of the Fed’s Beige Book later in the day: US expansion continues, but at slower pace: Beige Book
Also released today were consumer borrowing figures: “Consumers stepped up their borrowing in July by the largest amount since the beginning of the year, the Federal Reserve reported Wednesday. Consumer credit increased at a seasonally adjusted annual rate of 6.4 percent in July, or by $10.9 billion, from the previous month. That marked the biggest gain since January, when consumer borrowing surged at a 15.8 percent pace.” American consumers continue to put themselves more and more in to debt in order to keep the economy afloat. Buy more, save less has been a trend taken much too far in recent years.
Oil was mixed today as it fell on OPEC news about production, capacity, and their preferred price range, but then gained as refineries were forced to shut down due to hurricane Ivan. The continuous contract ended up $0.18 to $43.09.
The ten year Treasury note yield fell to 4.163% from 4.264% as the September 2004 U.S. Treasury bond ended up 0.86% to 122 14/32. Bond Prices Rise on Greenspan Comments.
The Dow, Nasdaq, and S&P were mixed and mostly lower all day with the Dow losing 0.28% to 10313.36, the Nasdaq losing 0.43% to 1850.64, and the S&P losing 0.45% to 1116.27.
The U.S. dollar index fell 0.45 points to 88.75 after being up before Greenspan spoke. The euro index gained 0.84 points to 121.79 as it bounced off the 120 level once again and the yen gained 0.11 points to 91.52.
Gold & Silver Report from GoldSeek.com & SilverSeek.com:
Gold Warehouse Stocks: | 4,880,152 | - |
Silver Warehouse Stocks: | 109,672,510 | - |
Gold and silver were down early in the day before making modest gains after Greenspan Spoke with gold ending up $2.00 to $389.90 and silver losing $0.02 to $6.16.
The XAU and HUI were up midday but fell off a bit into the close with the XAU losing 0.41% to 91.77 and the HUI losing 0.47% to 198.36.
Gold & Silver Stock News Update from GoldReview.com:
Pacific Rim, Newmont, Canyon Resources, Seabridge Gold, Placer Dome, Eldorado Gold, IMA Exploration, and Silver Standard Resources 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 Wednesday, 8 September 2004 | Digg This Article
Gold Seeker Closing Report – September 8, 2004
