-- Posted Wednesday, 5 October 2005 | Digg This Article
Market Analysis from CapitalUpdates.com:
ISM Services for September came in less than the expected 60.0 at 53.3, dropping from August’s mark of 65 and showing expansion at the slowest rate in over 2 years. The drop was the largest in the index’s 8 year existence. The “prices paid” component of the report rose to an all-time high at 81.4 and spurred further inflation fears.
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 10/01 expected at 350,000, though many will be looking ahead to Friday’s September jobs data. Nonfarm Payrolls are currently expected at about -150,000.
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 slightly higher ahead of the inventory report that saw crude inventories draw 300,000 barrels, gasoline inventories draw 4.3 million barrels, and distillate stocks draw 5.6 million barrels. All of the draw downs were larger than most expected and oil initially jumped higher as a result, but it soon fell off to find slight losses as traders looked further into the report and saw signs of demand dropping off. After some mixed and choppy trade, oil dropped off further in the last hour of trade and ended the day with a loss of $1.11 to $62.79.
Treasuries gained on the economically disappointing ISM Services report, though gains were small as the inflation fears raised by the “prices paid” portion of the report limited losses in interest rates.
Treasuries | Close | Gain/Loss |
10-Year Note Yield | 4.361% | -0.015 |
December 2005 Bond | 114 6/32 | +8/32 |
The Dow, Nasdaq, and S&P fell on inflation fears and company result warnings and ended near their lows of the session. The S&P joined the Dow and Nasdaq in the category of trading lower on the year. All three indices fell to near 3 month lows.
Index | Close | Gain/Loss |
Dow | 10317.36 | 1.19% |
Nasdaq | 2103.02 | 1.70% |
S&P | 1196.39 | 1.49% |
Among the big names making news in the market today were Wachovia, Freddie Mac, Delphi, ADC, Human Genome, GM and Toyota, Wendy’s, Viacom, and Yum Brands.
The U.S. dollar index fell from 12 week highs on the economically disappointing ISM Services report. The yen rebounded from 16 month lows.
Currency | Close | Gain/Loss |
U.S. Dollar Index | 90.00 | -0.10 |
Euro Index | 119.52 | +0.25 |
Yen | 87.71 | +0.17 |
Gold & Silver Report from GoldSeek.com & SilverSeek.com:
Gold Warehouse Stocks: | 6,136,337 | - |
Silver Warehouse Stocks: | 117,287,547 | - |
Gold traded mixed and near unchanged in Asia and London before dropping off in early New York trade, but it rallied back in the last 2 hours of trade and ended the session near its highs with a gain of $0.10 to $465.60. Silver followed a similar pattern and gained $0.06 to $7.40.
Gold and silver equities fell throughout the morning to find over 2% losses before rebounding in early afternoon trade, but all three indices fell back off by the close to end near their lows.
Index | Close | Gain/Loss |
XAU | 106.98 | -2.93% |
HUI | 229.78 | -3.00% |
GDM | 734.78 | -2.93% |
More Precious Metals Analysis:
“The gold market wasn't the least bit supported by the weakness in the Dollar, nor by the periodic strength in copper and platinum. Gold also wasn't supported by higher price action in natural gas partly because crude oil was soft. It would certainly seem like the series of holidays have thinned speculative interest in gold but the sharp slide in equity prices might be considered slightly bearish as anything that hints of economic slowing or a turn away from inflation could cause an overbought gold market to fall back on the charts.” - The Hightower Report, Futures Analysis and Forecasting
Gold & Silver Stock News Update from GoldReview.com:
Bema Gold’s closed ‘bought deal’ financing for C$142.7 million, Ian Telfer’s Entrepreneur Of The Year award, Ivanhoe’s copper and gold deposit in Mongolia, NovaGold’s Galore Creek results, Endeavour’s closed ‘bought deal’ private placement for C$14.4 million, First Silver’s increased mining capacity, and Hecla’s loss of their exploration vice president were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. DRDGOLD | DROOY +3.03% $1.36 |
2. Gold Reserve | GRZ +0.47% $2.15 |
LOSERS
1. Lihir Gold | LIHRY -8.42% $25.78 |
2. Aurizon | AZK -7.38% $1.13 |
3. Crystallex | KRY -7.38% $1.38 |
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
Winners & Losers tracks NYSE and AMEX listed stocks that trade over $1.
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, 5 October 2005 | Digg This Article
Gold Seeker Closing Report – Inflation Fears Spook Markets
