-- Posted Wednesday, 6 July 2005 | Digg This Article

Market Analysis from CapitalUpdates.com:

ISM Services for June came in higher than the expected 58.9 at 62.2, rising from a 2 year low of 58.5.  A reading above 50 indicates expansion.

Amid a flurry of protests, the G8 summit started in Scotland today.  African debt relief, world climate change, China, energy, and the world economy are among the subjects being discussed, but there is no official word about these topics out from the meeting yet.

Tomorrow at 8:30AM EST brings Initial Jobless Claims for 7/02 expected at 320,000.  Retail Sales from a variety of retailers will also start to roll in.  The G8 Summit also continues.

Oil made new record highs today and gained $1.69 to $61.28 on further worries surrounding storms in the Gulf of Mexico and their impact on supplies.  Evacuations and refinery outages are among the top concerns as rumors speculate tropical storm Dennis may become a hurricane.  Unleaded gas and heating oil also made new record highs, both around $1.79.  A draw down in crude inventories is expected in the inventory report tomorrow.

Treasuries gained today “on speculation that yields at a two-week high didn't reflect expectations for inflation to remain contained.”

The Dow, Nasdaq, and S&P traded mostly lower today, with sharp losses coming after 2PM EST as oil climbed above $61.  All three indices ended near their lows of the day.

Among the big names making news in the market today were PacifiCare and UnitedHealth, GM, Qualcomm and Broadcom, AOL, eBay and PayPal, Zions and Amegy, and Walgreens.

Despite rumors last week that the ECB might cut interest rates, the clear consensus now is that they will hold rates at 2% at their monthly meeting tomorrow.  As a result, the U.S. dollar index fell off, but only slightly as the ISM Services report held the index up.  A possible rate cut by the Bank of England is still possible to take rates down from 4.75%, but a cut from them is also now seen as unlikely.  The yen was hurt today by record high oil and made new 13 month lows.

Gold & Silver Report from GoldSeek.com & SilverSeek.com: 

Gold gained about $1 in after hours trade after the close yesterday and remained higher in Asian trade before moving another $1 higher in London trade and then dropping off to near unchanged by the New York open.  Gold then moved back up near $424 before falling off a bit, but ending the session with a gain of $0.80 to $423.10.

Silver traded just slightly higher in Asia and London before moving nicely higher in New York and ending with a gain of $0.09 to $6.91.

Gold and silver equities moved about 1.5% higher at the open and remained near their highs in morning trade before falling off a bit in afternoon trade along with the major indices.

More Precious Metals Analysis:

“The metals market showed some positive action Wednesday and might have been helped along by more gains in oil prices and by the apparent indecision in the US Dollar. It would seem like fund interest was surfacing in the silver market but with both silver and platinum making noted gains it is clear that some favor was returning to the marketplace. Unfortunately the gold market action seems to leave it as the most vulnerable commodity in the sector and with most in the trade assuming a large ongoing small spec and long position in gold it is apparent that the liquidation watch in gold continues.” - The Hightower Report, Futures Analysis and Forecasting

Gold & Silver Stock News Update from GoldReview.com:

Rumors that Crystallex might lose the rights to the large Las Cristinas gold deposit in Venezuela, NovaGold’s bought deal financing increased to C$62.6 million, Newmont’s defense of its top official in Indonesia against pollution-related charges, Goldcorp’s dividend, Coeur d'Alene’s appointment of W. Scott Lamb as Vice President of Investor Relations, and the listing and start of trade of both IMA Exploration and Silver Wheaton on The American Stock Exchange were among the big stories in the gold and silver mining industry making headlines today.

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- Written by Chris Mullen

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-- Posted Wednesday, 6 July 2005 | Digg This Article

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