-- Posted Tuesday, 13 September 2005 | Digg This Article

Market Analysis from CapitalUpdates.com:

PPI for August came in lower than the expected 0.7% at 0.6% and Core PPI came in lower than the expected 0.1% at 0.0%.  This eases inflation fears slightly and leaves the door open for the fed to pause on hiking interest rates, though the market still sees about an 80% probability that the fed will in fact raise rates next Tuesday.

The Trade Balance deficit for July came in lower than the expected $59.8 billion at $57.9 billion, though it is still the fifth largest on record and June’s mark was revised higher from $58.8 billion to $59.5 billion to make it the second largest deficit on record.  The trade deficit with China eclipsed June’s record and made a new record high at $17.7 billion.  “So far this year, the country's trade deficit is running at an annual rate of $693.1 billion, far ahead of last year's record imbalance of $617.6 billion. Economists believe the deficit will worsen even more in 2006 as soaring oil prices continue to transfer more U.S. dollars into the hands of foreigners.”  In the first 7 months of 2004, the trade deficit ran at $342.2 billion.  In the first 7 months of 2005, the trade deficit is currently running at $404.3 billion.

The Treasury Budget deficit for August came in larger than the expected -$47.8 billion at -$50.0 billion, bringing the federal deficit up to $352.6 billion through the first 11 months of the government’s fiscal year.  With one month to go, the budget deficit already exceeds the Congressional Budget Office’s estimate of $331 billion.  With the initial cost of hurricane Katrina being added to September’s budget deficit, it is possible that the deficit will exceed 2004’s record high mark of $412 billion.  President Bush has previously promised to cut the budget deficit in half by 2009.

Tomorrow at 8:30AM EST brings Retail Sales for August expected at -1.4%.  Excluding auto sales, Retail Sales are expected at 0.5%.  At 9:15AM are Capacity Utilization for August expected at 79.9% and Industrial Production expected at 0.3%.

Oil started off the day higher before soon moving to mixed and near unchanged, ending the day with a loss of $0.23 to $63.11 ahead of the inventory report tomorrow.  Oil is down for the third day in a row as recent high prices appear to be finally eating into demand.

Treasuries rose as PPI showed tame inflation before the impacts of Katrina.

The Dow, Nasdaq, and S&P spent most of the day lower on concerns over consumer spending, the economy, and the fed’s meeting next week.  An early afternoon rally brought all three indices to near unchanged at about 2:30PM EST before the indices resumed their fall to find new lows of the day by the close.

Among the big names making news in the market today were Northwest, Knight Ridder, Kroger, Best Buy, Delphi, Hewlett-Packard, Chrysler, Boeing and Lockheed, Time Warner, and Citigroup.

The U.S. dollar index climbed to new 2 week highs after the trade deficit came in lower than expected, sending both the euro and yen to new 2 week lows. 

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

Gold traded mostly slightly lower in Asia and London before dropping off in early New York trade.  Gold rebounded slightly heading into the afternoon, but it still ended with a loss of $3.60 to $445.70 to end its 8 session win streak and fall from 9 month highs.  Silver followed a similar pattern and lost $0.06 to $6.93.

Gold and silver equities started off lower and continued to fall throughout the day to end near their session lows.

More Precious Metals Analysis:

“The gold market came under early pressure but the pressure increased in the wake of muted inflation readings. We also think that some flight to quality longs were forced from position because of the improvement in the US Trade Deficit. However, since the Dollar didn't rise sharply in the wake of the Trade Deficit improvement we suspect that some of the selling pressure mitigated in the wake of the reports on Tuesday morning. Also dampening bull interest in gold on Tuesday were reports that US gold imports declined by 13% in July and were down a whopping 47% versus last July. Some traders think that gold will be weak or be locked in a tight range until the FOMC meeting next week. We think the bear camp has been given a slight edge because of the data released Tuesday morning.” - The Hightower Report, Futures Analysis and Forecasting

Gold & Silver Stock News Update from GoldReview.com:

Eldorado’s compromise with Afcan, AngloGold's decision to pull out of Peru, Cumberland’s expansion of the 2005 diamond drill program at the Company's 100% owned Meadowbank gold project, Freeport-McMoRan’s updated 3^rd quarter operations, Agnico-Eagle’s offer for Riddarhyttan extended to September 23^rd, Coeur’s priced sale of shares, Apex Silver’s joint venture with Apogee, and SilverCrest’s updated resources and drill results were among the big stories in the gold and silver mining industry making headlines today.

WINNERS

LOSERS

Note:  Winners & Losers Will No Longer Track Stocks Under $1.

Would you like to receive the Free Daily Gold Seeker Report in your e-mail? Click here.

Do you have questions, comments, or suggestions about this report?  Email Chris Mullen at cm@goldseek.com.

- 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.

All sources are given within the report and most articles can be found as they are released at http://www.capitalupdates.com/, http://www.goldseek.com/, http://www.silverseek.com/, and http://www.goldreview.com/.

© Gold Seeker 2005

Note: The following article may be reproduced provided the article, in full, is used and mention to Gold-Seeker.com is given.

Disclosure: The owner, editor, writer and publisher and their associates are not responsible for errors or omissions.  The author of this report is not a registered financial advisor.  Readers should not view this material as offering investment related advice. GoldSeek.com has taken precautions to ensure accuracy of information provided. Information collected and presented are from what is perceived as reliable sources, but since the information source(s) are beyond GoldSeek.com’s control, no representation or guarantee is made that it is complete or accurate.  The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action.  Past results are not necessarily indicative of future results.  Any statements non-factual in nature constitute only current opinions, which are subject to change.  GoldSeek.com and employees associated with Gold Seek LLC do not trade the stocks mentioned in stock reports for one week prior to and one week following publication. The information presented in stock reports are not a specific buy or sell recommendation and is presented solely for informational purposes only.  The author/publisher may or may not have a position in the securities and/or options relating thereto, & may make purchases and/or sales of these securities relating thereto from time to time in the open market or otherwise outside of the trading timeframe listed above. GoldSeek.com may have been compensated for their services in preparing and publishing this report. Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities & therefore information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein.  Investors are advised to obtain the advice of a qualified financial & investment advisor before entering any financial transaction.

-- Posted Tuesday, 13 September 2005 | Digg This Article

Previous Articles by Chris Mullen, Gold Seeker

© 1995 - 2019

Live GoldSeek Visitor Map | Disclaimer