Market Analysis from CapitalUpdates.com:
Note: All U.S. and Canadian markets are closed on Monday in observance of Labor Day.
Nonfarm Payrolls for August came in lower than the expected 190,000 at 169,000. July’s number was revised up to 242,000 from 207,000. The BLS net birth/death adjustment added 132,000 payrolls, though it should be noted that this adjustment is to the non-seasonalized number, and it only affects the above seasonalized number by a small percentage.
The Unemployment Rate came in lower than the expected 5.0% at 4.9%, a four year low. The Average Workweek came in as expected at 33.7. Hourly Earnings came in lower than the expected 0.2% at 0.1%. With both Nonfarm Payrolls and Hourly Earnings coming in below expectations, inflation fears eased and it leaves the door open for the fed to stop raising interest rates should they choose to do so in order to combat any economic impacts from Hurricane Katrina.
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The gold price is an amalgam of diverse and changing influences, from Currencies to Jewellery, from Investors to Speculators. From Asia, to India, to Australia, to Canada, to South Africa, to the U.S.A. and to Asia, the gold price is of interest to all. It cannot be seen in isolation as a metal, but must be understood as a Global Thermometer measuring monetary, political, economic, stability as well as the raw demand / supply features of the metal itself. These factors do not merely add up to the price, but interact in sometimes strange ways, to produce the gold price. For example, rising prices often lead consequently to rising demand, as the appetite for the metal grows. Its price may rise in one currency and fall in another, at the same time. Overall, it reacts sensitively to the overall level of global stability, which, in turn, gives us the gold price.
It is our task in this letter to track these different features, giving you both the Technical Analysis and the fundamental features impacting on the gold price each week along with a T.A. focus on metal equities. It is our goal to help you to understand and profit from this market, wherever you are on this globe, in a professional manner.
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Oil fell on Friday after some pipelines previously closed due to Katrina resumed flow and the EU pledged oil aid. Oil ended with a loss of $1.90 to $67.57, but is still higher on the week by 2.18%. Gasoline lost .2253 to 2.1837, but is still up on the week by almost 10%.
Treasuries fell off as the yield on the 10-year rebounded from 8 week lows. For the week, the yield is lower by 3.82% and the bond is higher by 1.18%.
Treasuries | Close | Gain/Loss |
10-Year Note Yield | 4.029% | +0.01 |
September 2005 Bond | 118 3/32 | -5/32 |
Despite tame jobs data and lower oil and gas, the Dow, Nasdaq, and S&P struggled to find gains Friday, with all three indices falling off into the close and ending near their lows of the day. For the week, the Dow is higher by 0.48%, the Nasdaq is higher by 0.96%, and the S&P is higher by 1.07%.
Index | Close | Gain/Loss |
Dow | 10447.37 | -0.12% |
Nasdaq | 2141.07 | -0.32% |
S&P | 1218.02 | -0.29% |
Among the big names making news in the market Friday were Albertson’s, Hannover Re, MCI and Verizon, Boeing, UPS, and L’Oreal.
The U.S. dollar index hit new 3 month lows down near 86 overnight before rebounding in early morning U.S. trade. The euro index traded as high as 125.85 overnight before falling off a bit as the dollar rebounded, but it still managed to make a new 3 month high. The yen made a new 2 week high. For the week, the dollar is lower by 1.82%, the euro is higher by 2.06%, and the yen is higher by 0.21%.
Currency | Close | Gain/Loss |
U.S. Dollar Index | 86.27 | -0.30 |
Euro Index | 125.42 | +0.43 |
Yen | 91.13 | +0.06 |
This week’s economic reports:
Next week starts off economically on Tuesday at 10AM with ISM Services for August expected at 61.3. Wednesday brings Productivity and the Fed’s beige Book. Thursday brings Initial Jobless Claims, Wholesale Inventories, and Consumer Credit. Friday brings Export and Import Prices.
Gold & Silver Report from GoldSeek.com & SilverSeek.com:
Gold Warehouse Stocks: | 6,003,704 | -228 |
Silver Warehouse Stocks: | 115,587,245 | -2,002 |
COT Gold Report - September 2, 2005
COT Silver Report - September 2, 2005
Gold traded mostly slightly higher in Asia and accomplished new highs in London at about $447 before falling off in New York, but still ending higher by $1.30 to $442.80. Silver traded slightly lower in Asia before gaining in London trade, but it also fell off in New York and gained just $0.01 to $6.97 after trading above $7 in earlier trade. For the week, gold is higher by $6.00 or 1.37% and silver is higher by $0.30 or 4.5%.
Gold and silver equities traded mixed and near unchanged in a tight range and ended with small losses. For the week, the XAU is higher by 5.48%, the HUI is higher by 4.41%, and the GDM is higher by 5.06%.
Index | Close | Gain/Loss |
XAU | 99.01 | -0.14% |
HUI | 212.47 | -0.45% |
GDM | 689.74 | -0.37% |
More Precious Metals Analysis:
“The entire precious metals complex showed strength in a pre-holiday reduced session. Certainly the weak Dollar and positive leadership from international gold markets helped the gold higher and even though prices settled back off the day's high the gold and silver markets leave the week with a better psychological standing than they entered the week with. Some buyers might have been inspired by the potential for weekend violence in New Orleans, while other buyers might have come in off the idea that regional gasoline shortages might cause a weekend backlash.” - The Hightower Report, Futures Analysis and Forecasting
Gold & Silver Stock News Update from GoldReview.com:
South Africa’s mining union agreement with Angloplat, Kinross Gold’s late filing status update, Sterling Mining’s completed survey, Harmony’s plan to roll out extended working hours at two key mines, and Placer Dome’s announcement that Western Areas Limited has fully funded its outstanding cash call obligations to their joint venture were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. STERLING | SRLM.PK +7.27% $2.95 |
2. Cumberland | CLG +4.41% $1.42 |
3. CARDERO | CDY +4.26% $2.94 |
LOSERS
1. Crystallex | KRY -3.85% $2.50 |
2. IMA Exploration | IMR -3.31% $2.34 |
3. ENDEAVOUR | EDR.V -3.3% $2.05 |
Note: Winners & Losers Will No Longer Track Stocks Under $1.
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- Written by Chris Mullen
The Gold Seeker Closing Report is a free edition providing a daily wrap-up of gold & gold-related news. For more in-depth analysis of the gold markets, subscribe to The Gold Forecaster.
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© Gold Seeker 2005
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-- Posted Friday, 2 September 2005
Gold Seeker Weekly Wrap-Up - Gold and Silver End the Week Firm
