-- Posted Wednesday, 28 September 2005 | Digg This Article

Market Analysis from CapitalUpdates.com:

Durable Goods Orders for August rose the most in 3 months and came in higher than the expected 0.6% at 3.3%.  Excluding transportation, orders rose 4.2%.

Tomorrow at 8:30AM EST brings the final reading for 2^nd quarter GDP expected at 3.3%.  The Chain Deflator is expected at 2.4%.  Initial Jobless Claims for 9/24 are also due in at 8:30.  At 10AM is the Help-Wanted Index for August expected at 39.

Oil traded slightly higher this morning ahead of the inventory report that saw crude inventories draw 2.4 million barrels, gasoline inventories build 4.4 million barrels, and distillate stocks draw 500,000 barrels.  Oil soon found slight losses following the report as the build in gasoline inventories was not expected, but most traders saw that surplus as already being consumed and mostly due to imports which will not be coming in the near future.  As a result, oil soon climbed to new highs on the session and ended the day with a gain of $1.28 to $66.35.

Treasuries gained throughout most of trade as the yield on the 10 year fell from 6 week highs.

The Dow, Nasdaq, and S&P started off higher on an encouraging Durable Goods Orders report, fell off in afternoon trade as oil turned losses into gains, but then rebounded into the close to end mixed and near unchanged.

Among the big names making news in the market today were NRG Energy and Texas Genco, DaimlerChrysler, Apple, Kodak, Gazprom and Sibneft, Delphi, General Motors, and AIG.

The U.S. dollar index fell slightly on profit taking to fall from 2 month highs, but losses were pared on the strong Durable Goods Orders report.  The euro rebounded from 2 and ½ month lows and the yen rebounded from 16 month lows.

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

Gold traded mixed and near unchanged in Asia and London and found minor gains in early New York trade before jumping higher in the last hour of trade and ending near its highs with a gain of $7.00 to $469.40 to make a new 17 year closing high.  Silver traded mixed and near unchanged in Asia and London before marching steadily higher in New York and ending near its highs with a gain of $0.07 to $7.32, just $0.03 from 3 month closing highs.

Gold and silver equities spent the morning mixed and near unchanged before climbing over 2% higher in afternoon trade and closing at new highs.  The XAU made new 20 month highs, the HUI closed at new 9 month highs, and the GDM ended just short of new 9 month highs.

More Precious Metals Analysis:

“Solid gains in energy markets and a firmer Euro pushed Dec gold through close in resistance at 471 setting the stage for a test of 475 and then likely the contract highs. Despite promises by several Fed members to remain vigilant against inflation, it may be very difficult to control given the high probability for a spike in winter fuel oil prices and the infusion of multi billion dollars worth of Federal aid for hurricane relief. Physical demand for gold is on the upswing, especially from Middle East countries who are seeing a windfall of "petrodollars" which they use to diversify investments by buying gold. End of quarter profit taking is possible, but given Wednesday's price action pull backs in gold are likely to be shallow and short lived.” - The Hightower Report, Futures Analysis and Forecasting

Gold & Silver Stock News Update from GoldReview.com:

The death of South African millionaire Brett Kebble, Newmont’s affirmed 2005 gold sales forecast, Placer Dome’s call for $600 gold in order for Cerro Casale to be feasible, Goldcorp’s first gold pour at Amapari, Freeport-McMoRan’s 3^rd quarter debt reductions, Randgold’s first gold pour at Loulo, Bema Gold’s amended prospectus, and Ivanhoe’s joint venture with BHP Billiton in Mongolia 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.

Reader Opinions:

Subject: Snow pleased with China Yuan Moves

-         Charleston Voice

As I pen this missive natural gas futures are up nearly 7% for the day, yet we have no inflation.  A 7% move in gold would mean a rise of $33. Sad to say that day will come - and more. Treasury Secretary Snow tells us "we're doing a good job with that" [keeping inflation down]. We should all send him our recent property tax bills which are indicative of state spending as states aren't authorized a printing press. I sense that much, if not most, of this state spending is attributable to federal 'revenue sharing' in which a state gets federal subsidies for a "well meaning" program, and then when the fed pulls the plug, the state is left with a mandate to continue the program on its own.

The tone of Snow's comments as regards Red China comes across to me as subdued, almost conciliatory towards a government that has sworn to bury us. The Red tail is now able to wag the bitch. No more bony fingers do we wag in the face of evil. We are in this together now. What Snow is hoping to see is another reevaluation in the yuan which accomplishes absolutely nothing for out-of-control congressional spending, but a higher yuan value puts the burden on Americans with higher prices for everything we buy. Mainland (Communist) China is now able to ratchet up their demands upon the US to abandon their defense treaty with Taiwan. And we can't do a damn thing about it. It will be known as a treaty in default.

Beijing Says U.S. Weapons Sale to Taiwan Will Undermine Relations With Washington -  full story.

http://www.washingtonpost.com/wp-dyn/content/article/2005/09/28/AR2005092800648.html

Recall that earlier message from two days ago in which the American Continental Congress bemoaned that by paper money issues they had mortgaged America's future as far out as 20 years? Banking elitists of this colonial era would be giddy and totally enraptured with hysterical jubilee should they live today. What progress!

Can anyone give me the figure as to how far out our future is now mortgaged?

From: Jim FitzGerald

Farther than any one can foresee or calculate. 

Remember the study done by Kent Smetters and Jagadeesh Gokhale which determined that even if Govt. spending were cut in HALF (except social security & medicare), we would still have a shortfall of over 3 trillion $'s annually!

I can not even imagine a trillion. But lets see, a trillion is a one with 12 zeros behind it, right? How many years is one trillion seconds? There is thirty one million, five hundred thirty six thousand, one hundred sixty seconds in a year, so if you divide that into a trillion, you get...

31,741 years! That's thirty one THOUSAND seven hundred forty one!

Can anyone give me the figure as to how far out our future is now mortgaged?

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- Written by Chris Mullen

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-- Posted Wednesday, 28 September 2005 | Digg This Article

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