-- Posted Wednesday, 2 November 2005 | Digg This Article

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

There were no major economic reports today, but a drop in mortgage applications to the lowest since April did bring up some new conversation about the potential bursting of the possible housing bubble, especially with average mortgage rates now well over 6% and rising which is likely at least in part due to the fed’s recent vigilance.

Tomorrow at 8:30AM EST brings Initial Jobless Claims for 10/29 expected at 330,000 and the preliminary reading for 3^rd quarter Productivity expected at 2.6%.  At 10AM are Factory Orders for September expected at -1.0% and ISM Services for October expected at 57.0.

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Gold and silver traded nicely higher in Asia before falling a bit in London, but they started gaining again in New York to overcome their overnight gains and close near their highs of the session with decent gains.

Gold and silver equities rose over 2% in morning trade and held near their highs throughout the afternoon to close with nice gains.

More Precious Metals Analysis:

“All of the metals rose in sync Wednesday and that seemed to confirm an improvement in sentiment. Reports of physical buying and buying on weakness were floated in the Press and that seemed to give confidence to the bull camp. Certainly seeing the Dollar slide and equity prices firm added to the recovery attempt in the gold market. Even more surprising is that the gold and silver managed to rise despite the fact that oil prices remained under pressure. In other words, the factors recently pressuring gold didn't seem to weigh on the market on Wednesday.” - The Hightower Report, Futures Analysis and Forecasting

The U.S. dollar index fell ahead of the ECB rate decision tomorrow that may indicate interest rate hikes in the future for the European Central Bank.  The yen fell to new 25 month lows.

Oil traded slightly lower ahead of the inventory report that saw crude inventories build 2.7 million barrels, gasoline inventories build 1 million barrels, and distillates fall 200,000 barrels.  The numbers were initially considered bearish and oil remained lower immediately after the report as a result, but prices in oil, gasoline, natural gas, and heating oil soon rose as traders looked further into the report and digested figures showing recovering demand.  All 4 fell back near their lows of the day by the afternoon, but they then rose into the close to end the session near unchanged.

Treasuries fell as the yield on the 10-year rose to new 7 month highs on the prospect for further interest rate hikes by the fed.

The Dow, Nasdaq, and S&P rose on mixed earnings, lower oil, and hopes for a November rally in the major indices despite higher interest rates.

Among the big names making news in the market today were Prudential Financial, Qualcomm, Symantec, GE, Wal-Mart and Seiyu, J&J and Guidant, Sprint Nextel, Deutsche Telekom, Walgreen’s, Devon Energy, Boeing, Time Warner, Cigna, and Duke Energy.

Gold & Silver Stock News Update from GoldReview.com:

Pan American Silver’s profit, Goldcorp’s dividend, Desert Sun’s conference call, Northgate’s completed merger with Young-Davidson, and Golden Tag’s agreement with ECU Silver Mining 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.

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

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-- Posted Wednesday, 2 November 2005 | Digg This Article

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