-- Posted 28 November, 2005 | | Source: SilverSeek.com

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

Existing Home Sales for October came in less than the expected 7.2 million units and fell 2.7% to 7.09 million units.  The number of unsold homes rose to an 18 year high.  Tomorrow at 8:30AM EST brings Durable Goods Orders for October expected at 1.5%.  At 10AM are Consumer Confidence for November expected at 90.0 and New Home Sales for October expected at 1.2 million units.

Gold traded mostly nicely higher in Asia and early London trade before falling off markedly in late London and early New York trade, but it then rebounded nicely in later New York trade to end near its highs of the session with a nice gain at new 17 and ¾ year highs.  Gold closed just $1.70 from $500, a level last seen in December of 1987.  Silver traded mostly higher in Asia and London before falling off to near unchanged in early New York trade, but it then rose nicely in the last hours of trade to end near its highs with a 1.83% gain and close at new 18 year highs.  Silver last traded this high in early August of 1987.

Gold and silver equities traded mixed and near unchanged throughout the day and ended just slightly lower.  The XAU, HUI, and GDM all sit about 1% from what would be new 8 and ½ year closing highs for the XAU and new all-time highs for the HUI and GDM.  The Gold Bugs Index (HUI) was introduced in May of 1996 and the Gold Miners Index (GDM) was just introduced in late 2004. 

Euro gold made new all-time highs above €420.  Platinum topped $1,000 for the fist time in over 25 years before pulling back a bit, but it still ended with a $7 gain to $986.  Palladium gained $5 to $260 to get back near 18 month highs and copper made new all-time highs above $2 per pound.

More Precious Metals Analysis:

“The precious metals in general caught fire on Monday morning, with the gold market possibly seen as the lagging market. Certainly active fund buying was the root cause behind the run-up but we also think that the reversal in the Dollar added to the bullish tone in the marketplace. Apparently Peru noted lower gold production in the most recent monthly stats and that would seem to keep the physical supply and demand situation in gold as supportive of the bull trend. It should be noted that the industrial metals were strong along with the precious metals and that suggests to us that a favorable view toward the world economy is adding into the upward incentive in metals.” - The Hightower Report, Futures Analysis and Forecasting

The U.S. dollar index fell off from near 2 year highs as a poor Existing Home Sales report hinted toward a pause in interest rate hikes by the fed in the near future.  The yen rebounded from 27 month lows.

Oil fell down near $57 on mild U.S. weather forecasts and speculation over OPEC supplies and production.

Treasuries gained as a drop in Existing Home Sales suggested a peak in the housing market and reduced pressure on the fed to raise interest rates.

The Dow, Nasdaq, and S&P traded mostly lower Monday and ended near their lows of the session despite positive reports on retail sales, lower oil, and lower interest rates.  The Dow fell from 8 month highs and the Nasdaq and S&P fell from 4 and ½ year highs.

Among the big names making news in the market today were Merck, Wal-Mart and other retailers, Federated, ThyssenKrupp and Dofasco, Constellation and Vincor, and Ahold.

Gold & Silver Stock News Update from GoldReview.com:

Cumberland’s drill results at the Meadowbank gold project, Newmont’s subsidiary’s sale of 81.5 million Oxiana shares, Ivanhoe’s discussions with the Mongolian government on mining law, Iamgold’s sale of gold royalties, Goldcorp’s acquired 10% interest in Wolfden, and Silver Standard’s acquisition in Mexico 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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