-- Posted Tuesday, 1 November 2005 | Digg This Article
Market Analysis from GoldSeek.com, SilverSeek.com & CapitalUpdates.com:
Report | For | Reading | Expected | Previous |
ISM Index | Oct | 59.1 | 57.0 | 59.4 |
Construction Spending | Sep | 0.5% | 0.5% | 0.6% |
Fed Funds Rate | 11/1 | 4.0% | 4.0% | 3.75% |
The Prices Paid component of the ISM Index rose to 84 from 78 and raised some inflation fears as it was the highest reading since May of last year. Construction Spending rose as expected to an all-time high as the boom in the building industry continues. As expected, the fed raised rates by 25 basis points for a 12th consecutive time to bring the federal funds rate to 4%. The “measured” and “accommodative” language remained in the FOMC policy announcement, indicating that ¼ point rate hikes are likely to continue in the near future. The fed also noted that longer term inflation expectations remain contained and core inflation is relatively low despite the fact that high energy prices add to inflationary pressures. There are no major economic reports due out tomorrow.
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| Close | Gain/Loss |
Gold | $459.10 | -$5.70 |
Silver | $7.43 | -$0.09 |
XAU | 105.90 | -1.80% |
HUI | 222.52 | -0.14% |
GDM | 719.13 | -0.21% |
USD | 90.03 | -0.06 |
Euro | 119.95 | +0.08 |
Yen | 85.70 | -0.22 |
Oil | $59.85 | +$0.09 |
10-Year | 4.577% | +0.018 |
Bond | 111 25/32 | -6/32 |
Dow | 10406.77 | -0.32% |
Nasdaq | 2114.05 | -0.14% |
S&P | 1202.76 | -0.21% |
Gold Warehouse Stocks: | 6,351,463 | - |
Silver Warehouse Stocks: | 116,256,983 | - |
Gold and silver traded mostly slightly higher in Asia and London before once again dropping off markedly in early New York trade and remaining near their lows into the close to end with over 1% losses. Gold fell to new 6 week closing lows while silver fell to over 3 week closing lows.
Gold and silver equities again held up quite nicely despite the notable losses in gold and silver. All three indices started off slightly lower, but they soon moved up to trade mixed and near unchanged for much of trade before ending slightly lower.
More Precious Metals Analysis:
“Both gold and silver came under more direct selling pressure as the Dollar was at times strong and the market was fearful of the Fed early in the session. With oil prices down again and the US economic numbers mixed we can understand an additional wave of long liquidation, especially since the metals were overbought and the early selling violated a series of critical chart support levels. We also think that increased Press coverage of the President's Bird Flu plans and suggestions from the Chinese that they would close their borders to travel in the event that human to human transmission of bird flu were detected in that country, was also a deflationary pressure on gold and silver prices on Tuesday.” - The Hightower Report, Futures Analysis and Forecasting
The U.S. dollar index gained slightly on the ISM Index report ahead of the FOMC policy announcement that caused it to sell off a bit and end the day near unchanged. The yen fell to new 25 month lows.
Oil traded mostly slightly lower ahead of the inventory reports tomorrow as traders continue to digest forecasts of warmer winter weather, but it did end the day near the top of its range to close slightly higher.
Treasuries fell after the Prices Paid component of the ISM Index rose to 84 from 78 and raised some inflation fears, though losses were minor ahead of the FOMC policy announcement that initially sent bonds higher before falling back to find slight losses on the day.
The Dow, Nasdaq, and S&P traded mostly slightly lower on Dell’s profit warning before the FOMC policy announcement that caused all three indices to initially jump higher to near unchanged on the day, but all three indices soon fell back near their lows of the session and ended the day slightly lower.
Among the big names making news in the market today were Electronic Arts, Sun, Toyota, GM, Ford, Chrysler, Cox and Cebridge, Qwest, Procter & Gamble, Viacom, Marsh & McLennan, Molson Coors, Sirius, Johnson & Johnson and Guidant, and Dell.
Gold & Silver Stock News Update from GoldReview.com:
Freeport-McMoRan’s dividend increase, Golden Star’s mining in Ghana, Northern Dynasty’s step out drilling at Pebble, Glamis Gold’s 3rd quarter results and Marlin Mine startup, and First Majestic’s La Candelaria Silver Mine purchase were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Golden Star | GSS +5.22% $2.62 |
2. Metallica | MRB +4.08% $1.53 |
3. Eldorado Gold | EGO +3.62% $3.15 |
LOSERS
1. Cumberland | CLG -4.2% $1.37 |
2. Hecla Mining | HL -3.86% $3.24 |
3. Gold Reserve | GRZ -3.81% $2.02 |
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- Written by Chris Mullen
Winners & Losers tracks NYSE and AMEX listed stocks that trade over $1.
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© Gold Seeker 2005
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-- Posted Tuesday, 1 November 2005 | Digg This Article
Gold Seeker Closing Report – “Measured” and “Accommodative” Language Remain
