-- Posted 8 December, 2005 | | Source: SilverSeek.com
Market Analysis from GoldSeek.com, SilverSeek.com & CapitalUpdates.com:
Initial Jobless Claims for 12/03 came in higher than the expected 318,000 and rose from last week’s upwardly revised reading of 321,00 at 327,000. Tomorrow at 9:45AM EST brings the preliminary reading for December Michigan Sentiment expected at 85.0. At 10AM are Wholesale Inventories for October expected at 0.5%.
| Close | Gain/Loss |
Gold | $519.20 | +$5.10 |
Silver | $8.88 | +$0.10 |
XAU | 124.18 | +1.80% |
HUI | 264.86 | +1.52% |
GDM | 857.62 | +1.57% |
USD | 91.23 | -0.65 |
Euro | 118.20 | +0.98 |
Yen | 83.17 | +0.51 |
Oil | $60.66 | +$1.45 |
10-Year | 4.464% | -0.053 |
Bond | 112 29/32 | +20/32 |
Dow | 10755.12 | -0.52% |
Nasdaq | 2246.45 | -0.25% |
S&P | 1255.84 | -0.12% |
Gold Warehouse Stocks: | 6,666,668 | - |
Silver Warehouse Stocks: | 118,208,452 | - |
Gold rose up near $519 in Asia before falling off in London and then finding slight losses in early New York trade, but it then rose throughout the rest of trade in New York and ended near its highs with another impressive gain to make a new 24 and ½ year high. Silver traded just slightly higher in Asia before also falling off in London and finding slight losses in early New York trade, but it also rose throughout the rest of trade in New York and ended near its highs at a new 18 year high.
Platinum gained $5 to $992 to get back near 25 year highs, palladium gained $7 to $279 to make new 19 month highs, and copper fell slightly from all-time highs near $2.10 per pound.
Gold and silver equities rose throughout the morning and early afternoon to find about 2% gains before falling off slightly in the last couple of hours of trade along with the major indices, but they still ended with decent gains.
More Precious Metals Analysis:
“February gold rallied to new contract highs on Thursday, finding additional support from a weaker dollar and stronger energy prices on top of the general strength the market has been seeing lately from increased investor interest and the strong fundamentals. While the market appeared willing rally in the face of dollar strength up to this point, it also seemed ready to capitalize on the break in the dollar yesterday. March silver also posted new contract highs and closed strong in an outside trading session.” - The Hightower Report, Futures Analysis and Forecasting
The U.S. dollar index fell off markedly on indications of interest rate hikes in Europe and Asia. All eyes are now on the U.S. Fed and their comments next week.
Oil started off the day near $59, but it then rose throughout the day and climbed above $60 by early afternoon trade on cold weather fears. Natural gas stocks fell 59 billion cubic feet which was a slightly smaller loss than expected, but cold weather in the Northeast U.S. kept prices high and resulted in natural gas closing at a new all-time near $15.
Treasuries rose ahead of the government's $8 billion sale of 10-year notes today and continued to rise following the auction. Foreign demand was lower than recent levels, but overall demand was strong.
The Dow, Nasdaq, and S&P remained mixed Thursday morning on various earnings and guidance reports, but all three indices then fell off in late afternoon trade as oil furthered its gains.
Among the big names making news in the market today were U.S. Air, Citigroup, Qualcomm, Toll Brothers, Dunkin’ Donuts, Costo, McDonald’s, and Texas Instuments.
Gold & Silver Stock News Update from GoldReview.com:
Golden Star’s new issue, Tan Range’s drilling at Luhala, and Seabridge’s discovered gold/silver target on its Golden Arrow project were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Nevsun | NSU +9.3% $1.88 |
2. Orezone | OZN +6.32% $1.85 |
3. Lihir Gold | LIHRY +4.92% $33.08 |
LOSERS
1. Cumberland | CLG -5.14% $1.66 |
2. Metallica | MRB -4.63% $2.06 |
3. Miramar | MNG -3.35% $2.02 |
“My Two Ounces”
The above commentary is kept as objective as possible. “My Two Ounces” is a new segment of the report in which I will interject some market views of my own as well as some reader comments. I encourage the reader to engage and discuss these views in the new Forums section on SilverSeek.com. Access the “My Two Ounces” section of the forum here.
Bill Murphy’s “Midas” commentary from Wednesday was posted “in the clear” on Goldseek today. Want to learn more about GATA but aren’t ready to subscribe to Midas yet? GATA has a group on yahoo in which you can join to receive a daily email of messages posted by Chris Powell, the Secretary/Treasurer of the Gold Anti-Trust Action Committee Inc. View recent messages or sign up for the email list here. What are your thoughts about GATA and their claims about “those it accuses of illegal collusion to control the price and supply of gold, other commodities, and related securities.” Discuss this topic in our Forums.
Some reader reactions, “Your Two Ounces:”
This from “Long Dan Silver”
“Hello Chris,
One thing I have always wondered. How much of a futures contract move is needed to trigger margin calls. Then how much until the typical contract covers and runs. This has to be a big factor in short driven leverage on the market. It would also be a question that your readers would appreciate the answer to. For instance, the latest moves in gold and silver have moved outside the usual odds. There must be a lot of trouble for all the shorts. It seems to me that each percent more before the correction, just self reinforces the whole upward movement. At some point in sustained moves, it might be forced to proceed until short positions fall drastically. With silver, I would have thunk (har) that a dollar move in two months, will keep triggering short covers, with each day it continues. Also, since the current regime of banking crooks, keep changing the rules in their favor, is there any difference on how shorts and long are treated. I noted that margin requirements and contract costs went up and was amazed that none of you smart guys had a thing to say about it. I would think it has a direct result in reducing the activity of the small speculators and volume overall. How about the laws of unintended consequence?”
More from Michael W.:
“We here in West Virginia believe silver at a ratio of 58-1 of gold is ridiculous, it should be more like 12-1 considering inventories.”
Some great questions and comments from Dan and Michael, respond to any of the above by accessing the forum here or by sending your comments by email to cm@goldseek.com
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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.
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-- Posted 8 December, 2005 | |
