-- Posted Thursday, 22 September 2005 | Digg This Article
Market Analysis from CapitalUpdates.com:
Initial Jobless Claims for 9/17 rose to the highest in 2 years, but to less than the expected 450,000 at 432,000. About 103,000 claims were attributed to Hurricane Katrina. Last week’s claims were revised up to 424,000 from 398,000.
Leading Economic Indicators for August came in higher than the expected -0.3% at -0.2%, though the numbers are “pre-Katrina.” July’s mark was revised from a 0.1% gain to a 0.1% decline.
There are no major economic reports due out tomorrow.
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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 traded around $1 higher this morning before falling on news that Hurricane Rita was downgraded to a category 4 hurricane from its previous ranking of a category 5 hurricane. Oil ended with a loss of $0.30 to $66.50.
Treasuries dropped this morning before rebounding on Rita’s downgrade. The September 2005 bond expired yesterday, making the December 2005 bond now the most forward contract.
Treasuries | Close | Gain/Loss |
10-Year Note Yield | 4.176% | -0.012 |
December 2005 Bond | 115 28/32 | +5/32 |
The Dow, Nasdaq, and S&P spent the morning mixed and near unchanged before rising in later trade on Rita’s downgrade.
Index | Close | Gain/Loss |
Dow | 10422.05 | +0.42% |
Nasdaq | 2110.78 | +0.20% |
S&P | 1214.62 | +0.37% |
Among the big names making news in the market today were Rite Aid, KB Home, Sony, General Mills, Delta Air Lines, and DRS Technologies and Engineered Support.
The U.S. dollar index firmed this morning on technicals and held its gains in afternoon trade on Rita’s downgrade.
Currency | Close | Gain/Loss |
U.S. Dollar Index | 88.53 | +0.38 |
Euro Index | 121.45 | -0.69 |
Yen | 89.49 | -0.35 |
Gold & Silver Report from GoldSeek.com & SilverSeek.com:
Gold Warehouse Stocks: | 6,038,481 | - |
Silver Warehouse Stocks: | 116,777,887 | - |
Gold traded nicely higher starting in access trade last night and rose further in Asian trade to above $475 before falling a bit in London and then experiencing several sharp drops in New York trade. Gold dropped into the low $460s before rebounding a bit and ending the session lower by $1.80 to $466.50 to fall from 17 year highs. Silver followed a similar pattern, but was able to end unchanged at $7.35 to remain at 3 month highs.
Gold and silver equities fell from their 20 month and 9 month highs set yesterday, with all three indices falling over 2% in the first hour of trade before rebounding slightly and steadily for the rest of trade.
Index | Close | Gain/Loss |
XAU | 110.45 | -0.93% |
HUI | 238.76 | -1.83% |
GDM | 763.25 | -1.67% |
More Precious Metals Analysis:
“Precious metals prices fired up to 18 year highs early in the session Thursday, but Bank selling or outright profit taking by the funds seemed to stall the rally. We suspect that some players are concerned that significant slowing off the coming hurricane could deter physical buying interest in gold and silver. On the other hand, the significant run up in gold prices over the last month has probably caused some buyers to back away in hopes of a pullback in prices. With the US Dollar also rising in the action Thursday, we have to think that the gold market saw some currency related profit taking.” - The Hightower Report, Futures Analysis and Forecasting
Gold & Silver Stock News Update from GoldReview.com:
Venezuelan President Hugo Chavez’s further comments on their mining concessions, Crystallex’s defense of their Las Cristinas contract, Apollo Gold’s drill results at its Black Fox Project, Metallica’s updated La Fortuna resource estimate, Royal Gold’s pricing of public offering of common stock, Randgold’s delayed results and Nasdaq suspension, and ECU Silver’s update were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Cardero | CDY +7.74% $3.34 |
2. Miramar | MNG +2.72% $1.51 |
3. Ivanhoe | IVN +2.16% $7.58 |
LOSERS
1. Crystallex | KRY -26.46% $1.39 |
2. Gold Reserve | GRZ -24.19% $2.10 |
3. Cumberland | CLG -6.67% $1.40 |
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.
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
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-- Posted Thursday, 22 September 2005 | Digg This Article
Gold Seeker Closing Report – Watching Hurricane Rita
