-- Posted Monday, 24 October 2005 | Digg This Article

Market Analysis from GoldSeek.com, SilverSeek.com & CapitalUpdates.com:

There were no major economic reports today, but a surprise announcement came from the President about the new Fed chairman and stirred the markets to life.  Ben Bernanke was named to replace Greenspan once his term is up at the end of January.  Bernanke was near the top of a short list of people to replace Greenspan so his appointment comes as no surprise, but there was no expectation to hear the announcement today so it did surprise the markets a bit.  Bernanke is relatively well known and liked by the markets for his transparency, but many of his specific views on various policies are not well known and will likely be drawn out in the coming months during senate confirmation hearings.  One thing that is known about Bernanke is that he supports an “inflation target” to guide fed policy, but what that exactly means is also unclear to many and will likely be one of the main topics discussed in the coming senate confirmation hearings.

Tomorrow at 10AM brings Consumer Confidence for October expected at 88.0 and Existing Home Sales for September expected at 7.2 million.

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Gold fell in Asia and London before rising in early New York trade to find brief gains by late morning, but it then fell off in afternoon trade to end with a loss.  Silver followed a similar pattern but managed to end the session slightly higher.

Gold and silver equities rose throughout trade and ended near their highs despite the fact that gold fell off in late trade.

More Precious Metals Analysis:

“The gold market started out under pressure with the rest of the metals also under pressure. Certainly some players were exiting long gold positions because of the continued sharp slide in oil prices but with the Dollar coming under progressively stronger pressure throughout the session it was clear that gold was seeing some renewed buying interest. Apparently the Bank of China indicated that their currency was going to appreciate and that undermined the Dollar and in turn seemed to lift gold. It is also possible that the aggressive mid day run up in US equity prices prompted hopes that physical demand for precious metals was going to get back on track again.” - The Hightower Report, Futures Analysis and Forecasting

The U.S. dollar index traded mixed but mostly lower as traders digested the appointment of Bernanke and examined remarks by China about Yuan policy.

Oil started off the day under $60 and though it advanced for much of the trading session, it still ended slightly lower as Hurricane Wilma strikes Florida and misses oil rigs in the Gulf of Mexico.

Treasuries fell on the uncertainty surrounding the appointment of Bernanke as the next fed chairman, but the yield on the 10-year still remained under 4.5%.

The Dow, Nasdaq, and S&P started off higher on mostly positive earnings and lower oil and then extended their gains following the announcement of Bernanke as the next fed chairman.  All three indices ended near their highs of the day with over 1.5% gains.

Among the big names making news in the market today were American Express, Santander and Sovereign, Reebok, Kimberly-Clark, Cendant, Merck, Schering-Plough, Morgan Stanley and AMLI, Isuzu and GM, and Exxon, BP, and Shell.

Gold & Silver Stock News Update from GoldReview.com:

Agnico-Eagle’s increased ownership of Riddarhyttan, NovaGold’s appointment of Rothschild as financial advisor for Galore Creek, and Goldcorp’s addition to the S&P/TSX 60 and 60 Capped Indices were among the big stories in the gold and silver mining industry making headlines today.

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- Written by Chris Mullen

Winners & Losers tracks NYSE and AMEX listed stocks that trade over $1.

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-- Posted Monday, 24 October 2005 | Digg This Article

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