-- Posted Monday, 3 October 2005 | Digg This Article
Market Analysis from CapitalUpdates.com:
The ISM Index for September, the first nation-wide report for September (after Katrina), surprised and came in as an increase to 59.4 from 53.6, rather than the expected decrease to 52.0. The report brought up some inflation fears as the “Prices Paid” component of the report rose to 78 and indicated that the fed will continue to raise interest rates.
Construction Spending for August came in as expected and rose 0.4% to an all-time high of $1.11 trillion as the housing boom continues.
Tomorrow at 10AM EST brings Factory Orders for August expected at 2.0%.
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Oil traded mostly slightly lower in early trade and extended its losses in later trade to end the session with a loss of $0.77 to $67.47 “on signs that the release of emergency stockpiles will cover U.S. production lost in the Gulf of Mexico.”
Treasuries started off the day briefly higher before dropping off to find notable losses as interest rates jumped higher on the ISM Index report. The yield on the 10 year climbed to new 7 week highs.
Treasuries | Close | Gain/Loss |
10-Year Note Yield | 4.386% | +0.058 |
December 2005 Bond | 113 24/32 | -21/32 |
The Dow and S&P started off higher on lower oil and a barrage of merger and acquisition news, though both indices fell off in later trade as interest rates jumped higher on the ISM Index report. The Nasdaq, however, was able to trade slightly higher throughout the session despite high interest rates.
Index | Close | Gain/Loss |
Dow | 10535.48 | -0.31% |
Nasdaq | 2155.43 | +0.17% |
S&P | 1226.70 | -0.17% |
Among the big names making news in the market today were GM, Ford, Toyota, Nissan, Donnelly and Dex Media, Procter & Gamble, NRG Energy and Texas Genco, NTL and Telewest, Boots and Alliance UniChem, Telefonica and KPN, and Reliant.
The U.S. dollar index jumped to new 12 week highs following the release of the ISM Index report, furthering overnight gains seen on expectations of further interest rate hikes and on weakness in the yen due to the Bank of Japan's Tankan survey that showed business confidence rose less than economists expected. The euro index fell to new 12 week lows. The yen made new 16 month lows.
Currency | Close | Gain/Loss |
U.S. Dollar Index | 90.09 | +0.65 |
Euro Index | 199.22 | -0.96 |
Yen | 87.62 | -0.37 |
Gold & Silver Report from GoldSeek.com & SilverSeek.com:
Gold Warehouse Stocks: | 6,737,148 | - |
Silver Warehouse Stocks: | 116,6867,35 | - |
Gold fell around $3 in Hong Kong and furthered its losses in London before a brief rebound at the New York open that ended as the dollar found strength on the ISM Index report. Gold ended near its lows of the session with a loss of $3.20 to $465.50. Silver traded mixed in Asia before turning slightly lower in London and maintaining that range in New York to end with a loss of $0.06 to $7.36.
Gold and silver equities fell over 2% in morning trade before rebounding in the afternoon and cutting over half their losses to end just slightly lower.
Index | Close | Gain/Loss |
XAU | 112.35 | -0.50% |
HUI | 242.71 | -1.01% |
GDM | 773.02 | -0.83% |
More Precious Metals Analysis:
“The gold market started out soft and remained soft partly because of the strength in the Dollar and partly because the extended holiday in China. With the ISM and Construction spending from the US stronger than expected and the Dollar seemingly lifted by those readings it is not surprising that both gold and silver banked some profits. In fact, considering the magnitude of the spec long in gold and silver the markets were due for some profit taking. On the other hand, there would appear to be enough inflation talk in the headlines to underpin the metals and in the process keep the inflation buying interest alive in the metals.” - The Hightower Report, Futures Analysis and Forecasting
Gold & Silver Stock News Update from GoldReview.com:
More news about Crystallex’s Las Cristinas property in Venezuela, Gold Fields’ production guidance, and Silvercorp’s earned 77.5% interest in the Ying High-Grade Silver project were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Miramar | MNG +7.69% $1.68 |
2. Mines MGMT | MGN +3.47% $6.27 |
3. Ivanhoe | IVN +1.56% $8.49 |
LOSERS
1. Crystallex | KRY -10.83% $1.40 |
2. Apex Silver | SIL -4.46% $15.01 |
3. Gold Reserve | GRZ -4.35% $2.20 |
Note: Winners & Losers Will No Longer Track Stocks Under $1.
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- Written by Chris Mullen
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© Gold Seeker 2005
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-- Posted Monday, 3 October 2005 | Digg This Article
Gold Seeker Closing Report – Strong ISM Whipsaws Markets
