Market Analysis from CapitalUpdates.com:
The 2nd quarter Current account came in larger than the expected -$193.0 billion at -$195.7 billion. The headlines read that the current account fell for the first time since 2003, but it was only a drop because the 1st quarter current account was revised higher to -$198.7 billion from -$195.1 billion. The second quarter shortfall marks the second highest on record, just 3 billion behind the record high mark made in the 1st quarter.
Net Foreign Purchase came in at $87.4 billion, easily covering July’s trade deficit of $57.9 billion announced earlier this week. June’s purchases were also revised up to $80.9 billion from $71.2 billion.
The preliminary reading for September Michigan Sentiment came in lower than the expected 85.0 at 76.9, matching the biggest drop ever and marking the lowest reading since 1992.
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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 opened the day about $0.75 lower and continued it losses from there on further indications of slowing demand. Oil ended with a loss of $1.75 to $63.00 and is lower on the week by 1.69%.
Treasuries fell on inflation fears, sending the yield on the 10 year to new 4 week highs. For the week, the yield is higher by 3.37% and the bond is lower by 1.5%.
Treasuries | Close | Gain/Loss |
10-Year Note Yield | 4.262% | +0.048 |
September 2005 Bond | 115 5/32 | -16/32 |
The Dow, Nasdaq, and S&P spent the day higher on lower oil and company upgrades, with all 3 indices surging further in the last hour of trade on high volume on this quadruple witching Friday(contracts for stock index futures, stock index options, stock options and single stock futures all expire). For the week, the Dow is down 0.34%, the Nasdaq is down 0.7%, and the S&P is down 0.29%.
Index | Close | Gain/Loss |
Dow | 10641.94 | +0.79% |
Nasdaq | 2160.35 | +0.66% |
S&P | 1237.91 | +0.83% |
Among the big names making news in the market Friday were US Airways, Microsoft and AOL, Southwest, Danone, American Express, DaimlerChrysler, and Oce and Imagistics.
The U.S. dollar index traded lower overnight before rebounding during the day after the release of the morning’s economic data, but it still ended the day with a loss. The yen made new 2 week lows. For the week, the dollar is higher by 1.38%, the euro is lower by 1.41%, and the yen is lower by 1.49%.
Currency | Close | Gain/Loss |
U.S. Dollar Index | 88.05 | -0.07 |
Euro Index | 122.33 | +0.17 |
Yen | 89.72 | -0.65 |
This week’s economic reports:
Next brings the FOMC policy announcement along with Building Permits and Housing Starts on Tuesday, with Initial Jobless Claims and Leading Indicators coming on Thursday.
Gold & Silver Report from GoldSeek.com & SilverSeek.com:
Gold Warehouse Stocks: | 6,002,211 | -400 |
Silver Warehouse Stocks: | 116,777,887 | -41,797 |
COT Gold Report - September 16, 2005
COT Silver Report - September 16, 2005
Gold started mixed and near unchanged in Asia, but it soon jumped higher and rose throughout trade in London and New York, ending near its highs with a gain of $4.30 to $459.00 to make a new 17 year closing high. Silver traded mixed in Asia and found small gains in London and early New York trade before it launched higher at about 11AM EST, ending near its highs with a gain of $0.20 to $7.21 to make a new 6 week high. For the week, gold is higher by $10.50 or 2.34% and silver is higher by $0.21 or 3%.
Gold and silver equities rose throughout trade Friday and made new 9 month highs. For the week, the XAU is higher by 7.74%, the HUI is higher by 8.77%, and the GDM is higher by 7.74%.
Index | Close | Gain/Loss |
XAU | 110.54 | +3.83% |
HUI | 239.54 | +4.52% |
GDM | 774.40 | +3.83% |
“The gold market continued to rise sharply and in the process pulled up silver and platinum. It is clear that increased investment interest and buying by Bullion dealers present in the action Friday and with US Treasuries falling in the face of soft economy numbers it would certainly seem like inflation is playing a role in a number of markets. Other traders are suggesting that some buyers are in for inflation and others are in because of stagflation fears but in the end it would seem like flight to quality issues are playing a beneficial role in daily metals market action.”- The Hightower Report, Futures Analysis and Forecasting
Gold & Silver Stock News Update from GoldReview.com:
Kinross Gold’s update on late filing of financial statements, Placer Dome’s drill program on Nevada Pacific’s BMX property, Ivanhoe’s coal project in Mongolia, Miramar’s $15 million ‘bought deal’ financing, Riddarhyttan’s board disappointment over the market reaction to the Agnico bid, Endeavour’s C$9.6 million bought deal private placement, Silvercorp’s $6.4 million closed private placement, and ECU Silver’s drilling were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Hecla Mining | HL +13.59% $4.43 |
2. Sterling Mining | SRLM.PK +10.11% $3.05 |
3. Northern Dynasty | NAK +9.94% $3.98 |
LOSERS
1. Yamana | AUY -4.24% $4.29 |
2. Northgate | NXG -3.2% $1.21 |
3. Ivanhoe | IVN -1.32% $7.48 |
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, 16 September 2005
Gold Seeker Weekly Wrap-Up - Gold Makes A New 17 Year High
