-- Posted Tuesday, 22 November 2005 | Digg This Article

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

FOMC minutes from their November 1^st meeting indicated that the fed would change from their recent language “before long,” showed some members were concerned about the “risks of going too far” in terms of interest rate hikes, and noted that inflation risks have been tempered.  Tomorrow at 8:30AM EST brings Initial Jobless Claims for 11/19 expected at 312,000.  At 9:45AM is the revised figure for November Michigan Sentiment expected at 81.0.  At 10AM is the Help-Wanted index for October expected at 39.

Gold started off immediately higher in New York Access trade late yesterday and climbed up near $495 before falling back to $490 in Asian trade.  Gold then bounced around in the $490-495 range in London and New York trade and ended in the middle of that range to make a new 17 and ¾ year high.  Silver followed a similar pattern in the $8.10-$8.20 range before also ending in the middle of that range to make a new 19 month closing high.  Silver is now just 5 cents away from joining gold at what would be 18 year closing highs. 

At the time of writing (4PM EST), both metals are adding to their gains in today’s New York Access trade in reaction to the FOMC minutes that were released ½ hour after the close of both metals.

Euro gold continues to make new all-time highs above €415 an ounce, platinum fell further from recent 26 year highs and lost $2 to $964, palladium lost $9 to $255 to fall from 18 month highs, and copper fell from recent all-time highs near $2 per pound.

Gold and silver equities started off slightly higher before finding minor losses on profit-taking, but all 3 three indices then rebounded into the close to end marginally higher.  The Gold & Silver Index (XAU) rose to its highest closing level since March of 1997.  The HUI rose to its highest close since the January 5, 2004 close of 256.20.  Should it break that level and the 256.84 close of 256.84 on December 2, 2003, it will be making new all time highs as the Gold Bugs Index (HUI) was introduced in May of 1996.  The Gold Miners Index (GDM) is currently making new all-time highs as it was just introduced in late 2004.

More Precious Metals Analysis:

“Gold and silver prices started out with moderate gains but really weren't able to add to those gains and sustain the gains into the close. With the Dollar slightly weaker throughout the session and the Russian President talking up the expansion of Russian gold reserves we are a little disappointed with the gold and silver markets action. On the other hand, back month contracts in gold did manage to rise through the important $500 level and that might have created some light profit taking action. Early in the session Tuesday the Press reported aggressive Asian fund buying and that probably set the positive tone for the session.” - The Hightower Report, Futures Analysis and Forecasting

The U.S. dollar index held near unchanged early on as traders debated the future of interest rates around the world, but FOMC minutes late in the day indicated that the fed may stop raising interest rates soon and that caused the dollar to sell off against the euro and yen.  The dollar index fell from near 2 year highs, the euro rebounded from near 2 year lows, and the yen rebounded from recent 27 month lows.

Oil traded higher on short covering and winter weather worries ahead of inventory reports tomorrow that are expected to show small builds in oil, gasoline, and distillate stocks.

Treasuries gained after FOMC minutes that indicated the fed may pause soon.  The yield on the 10-year to fell to its lowest in a month.

The Dow, Nasdaq, and S&P started off the day lower on profit taking before rising to find slight gains in early afternoon trade and then extending those gains in later afternoon trade after the FOMC minutes indicated that the fed may stop raising interest rates soon.  The Dow made new 8 month closing highs and the Nasdaq and S&P made new 4 and ½ year closing highs.

Among the big names making news in the market today were GM, Calpine, Warner Music Group, Calpers, Deere, Heinz, Albertson’s, and Guidant.

Gold & Silver Stock News Update from GoldReview.com:

Cardero’s San Fernando drilling and plenty of news from the Junior Mining & Exploration Stocks were among the big stories in the gold and silver mining industry making headlines today.

WINNERS

LOSERS

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 Tuesday, 22 November 2005 | Digg This Article

Previous Articles by Chris Mullen, Gold Seeker

© 1995 - 2019

Live GoldSeek Visitor Map | Disclaimer