-- Posted Wednesday, 21 September 2005 | Digg This Article
Market Analysis from CapitalUpdates.com:
There were no major economic reports today, but tomorrow at 8:30AM EST brings Initial Jobless Claims for 9/17 expected at 450,000 and at 10AM are Leading Indicators for August expected at -0.3%.
ADVERTISEMENT
$99 Introductory Special!
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.
- For a limited time only, subscribe to the weekly "Global Watch - The Gold Forecaster" newsletter service. -
Oil traded higher this morning on fears over Hurricane Rita before the inventory report that saw crude inventories fall 300,000 barrels, gasoline inventories build 3.4 million barrels, and distillate inventories built 800,000 Barrels. Expectations were for a larger drop in crude inventories and a drop rather than build in gasoline inventories, but oil remained higher as fears over the potential impacts of Hurricane Rita trumped the bearish effects of the inventory numbers. Oil ended with a gain of $0.60 to $66.80.
Treasuries rose on expectations that the high cost of oil will slow economic growth.
Treasuries | Close | Gain/Loss |
10-Year Note Yield | 4.188% | -0.055 |
September 2005 Bond | 116 5/32 | +22/32 |
The Dow, Nasdaq, and S&P traded lower the entire session on worries over Hurricane Rita and high oil, with all 3 indices dropping throughout trade and ending near their lows of the session.
Index | Close | Gain/Loss |
Dow | 10378.03 | -0.99% |
Nasdaq | 2106.64 | -1.16% |
S&P | 1210.20 | -0.91% |
Among the big names making news in the market today were McDonald’s, Morgan Stanley, FedEx, Qualcomm, NYMEX, and Conagra.
The U.S. dollar index fell on worries over the potential implications of Hurricane Rita. The euro and yen rebounded from their respective 7 and 5 week lows.
Currency | Close | Gain/Loss |
U.S. Dollar Index | 88.15 | -0.48 |
Euro Index | 122.14 | +0.76 |
Yen | 89.84 | +0.47 |
Gold & Silver Report from GoldSeek.com & SilverSeek.com:
Gold Warehouse Stocks: | 6,040,892 | - |
Silver Warehouse Stocks: | 116,777,887 | - |
Gold traded mixed in Asia and London before climbing in choppy trade in New York and ending with a gain of $2.30 to $468.30 to close at new 17 year highs. Silver followed a similar pattern and gained $0.04 to $7.35 to make a new 3 month high.
Gold and silver equities rose about 3% in early trade and remained near their highs into the close. The XAU closed above its high made in late 2004 to rise to its highest since January 2004. Should the XAU close above 112.88, it will close at its highest since early 1997, thus putting it about 1% from 8 year highs. The HUI and GDM are still sitting just slightly below their late 2004 highs. As a result, the XAU is at 20 month highs and the HUI and GDM are at 9 month highs.
Index | Close | Gain/Loss |
XAU | 111.49 | +3.38% |
HUI | 243.22 | +4.34% |
GDM | 776.20 | +3.75% |
More Precious Metals Analysis:
“After some early profit taking the metals markets gathered sentiment and firmed into the close. The early weakness was mostly the result of the spillover from the FOMC, but once oil prices started to rise and the dire predictions began to flow off hurricane Katrina that seemed to rekindle broad based bullishness. With the Dollar also falling, it would seem like the precious metals markets are once again hitting on a number of cylinders. In the near term, flight to quality issues have given the bull camp new found confidence but we do think that the storm is playing a major part in the bullishness.” - The Hightower Report, Futures Analysis and Forecasting
Gold & Silver Stock News Update from GoldReview.com:
Cambior’s exploration in Canada, Crystallex’s Las Cristinas comments, Sprott’s accumulation of 5.9 million Rubicon shares, Northern Dynasty’s new porphyry copper-gold system at the Pebble Project in Alaska, Gold Reserve’s market activity comments, Pacific Rim’s $5.4 million Andacollo sale, Seabridge Gold’s Courageous Lake project, and Esperanza Silver’s exploration in Peru with Silver Standard Resources were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Crystallex | KRY +35% $1.89 |
2. DRDGOLD | DROOY +15.67% $1.55 |
3. Mines MGMT | MGN +13.79% $6.52 |
LOSERS
1. Rio Narcea | RNO -3.36% $1.44 |
2. Royal Gold | RGLD -2.76% $26.44 |
3. Ivanhoe | IVN -1.59% $7.42 |
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 Wednesday, 21 September 2005 | Digg This Article
Gold Seeker Closing Report – The XAU is 1% from 8 Year Highs; Gold Hits Fresh 17 year Highs
