-- Posted 7 December, 2005 | | Source: SilverSeek.com

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

Today we introduce a new segment of this report, “My Two Ounces.”  Learn more at the end of the report.

Consumer Credit for October came in less than the expected $5.0 billion gain and actually fell $7.2 billion, the largest drop ever.  Tomorrow at 8:30AM EST brings Initial Jobless Claims for 12/03 expected at 318,000.

Gold traded mixed in Asia before rising a bit in London, but it then fell off to near unchanged by the New York open before rising to above $516 by mid-morning in New York.  Gold fell off a bit from there, but it then rallied back at the close and ended near its highs with an impressive gain to make a new 24 and ½ year high.  Silver also started off mixed in Asia before rising in London and New York and closed with an over 1% gain.

Euro gold reached a new all-time high over €440, platinum gained $7 to $987 to get back near 25 year highs, palladium gained $3 to $272 to make new 19 month highs, and copper made new all-time highs up near $2.10 per pound.

Gold and silver equities traded about 3% higher mid-morning before falling off a bit, but they still closed with nice gains to make new highs.  The XAU rose to new 9 year highs and the HUI and GDM rose to new all-time highs.

More Precious Metals Analysis:

“Despite skepticism and a soaring US Dollar, the metals market soared to new highs. Even more surprising is the fact that a number of metals market soared in sync and the theme behind the buying continues to be physical demand. The Press suggested that some hedge interest might be forth coming and with gold prices streaking higher that is certainly not an impossible threat for the bull camp to consider. As long as a certain portion of the trade doubts that gold can continue to rise, we doubt that the market is bought out.” - The Hightower Report, Futures Analysis and Forecasting

The U.S. dollar index rose back near recent highs as traders look ahead to the fed’s meeting next week and debate interest rate movements around the world.  The yen fell to new 32 month lows.

Oil traded well above $60 this morning ahead of the inventory report that saw builds of 2.7 million barrels in crude, gasoline, and distillate inventories.  Oil soon fell under $60 following the report and ended near its lows of the day.

Treasuries fell ahead of the government’s 5-year note auction that saw limited overall demand, but more foreign demand than expected.  Bonds remained lower following the mixed auction, but losses were not severe.

The Dow, Nasdaq, and S&P started off slightly higher, but they soon fell off to find minor losses and then dropped further throughout most of trade before a rebound into the close that cut losses on the day by about half.

Among the big names making news in the market today were Ford, Constellation and Vincor, Vail Resorts, 3M, GM, General Dynamics, and Microsoft.

Gold & Silver Stock News Update from GoldReview.com:

Gammon Lake’s update on their Ocampo Gold-Silver Project and plenty of Junior Mining & Exploration Stock news were among the big stories in the gold and silver mining industry making headlines today.

WINNERS

LOSERS

Introducing “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.

The HUI today broke above the all-time intraday high of 258.60 set on December 2^nd, 2003 and also closed above the double tops of 256.84 and 256.20 set on December 2^nd, 2003 and January 5^th, 2004.  Gold yesterday broke above the $509.20 barrier set in February 1983 and surged yet again today to make new 24 and ½ year highs.  These events, in my opinion, are quite significant and could very well indicate some nice gains for the metals and mining shares in the near future.

What are your two ounces?  Access the forum here or send 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.

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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