-- Posted 5 January, 2006 | | Source: SilverSeek.com

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

Jobless Claims fell to a 5 year low as seasonal worker layoffs were not as widespread as expected.  ISM Services expanded and inflation was seen as tame as the prices paid part of the index fell to 69.5 from 74.2 in November.

Tomorrow at 8:30AM EST brings December’s jobs data.  Nonfarm Payrolls are expected at 200,000, the Unemployment Rate is expected at 5.0%, Hourly Earnings are expected at 0.2%, and the Average Workweek is expected at 33.7.

Gold traded mostly slightly lower in Asia before it dropped further in London and then fell under $525 in New York, but it then rebounded slightly into the close to end off its lows but still with a notable loss to fall from 24 and ½ year highs.  Silver traded slightly lower in Asia and London before it fell off markedly at the New York open and remained near its lows into the close to end with a loss of 3.52% and fall from 18 and ½ year highs.

Copper fell slightly from the new all-time highs it set above $2.10 yesterday.  The CRB index also fell slightly from the 25 year closing high of 338.49 it set yesterday.

Gold and silver equities fell over 2% at the open and remained near their lows throughout trade.  The XAU fell from 9 and ½ year highs and the HUI and GDM fell from all-time highs.

More Precious Metals Analysis:

“The precious metals all came under aggressive selling pressure as a number of funds apparently turned on the market. With the Dollar posting a slight rise Thursday, there might have been a slight currency induced pressure on gold, but most traders agree that simple profit taking was the primary element in the trade. While there was evidence of increased gold production from Peru prior to the opening Thursday, we seriously doubt that the prospect of higher physical supply from 2005 was the catalyst behind the washout.” - The Hightower Report, Futures Analysis and Forecasting

The U.S. dollar index rebounded slightly from large losses the past two days as investors prepared for tomorrow’s jobs report.  The dollar rebounded from 2 month lows, the euro fell from 2 month highs, and the yen made new 2 week highs.

Oil traded slightly lower this morning before dropping further after inventory reports that showed crude inventories fell 1 million barrels, gasoline inventories built 1.4 million barrels, distillates built 2.1 million barrels, and natural gas inventories built 1 billion cubic feet.  Crude inventories fell about as expected and gasoline and distillate inventories built a bit more than expected, but the real surprise came from the slight build in natural gas inventories which were expected to fall around 30-50 bcf.  Natural gas fell below $10 (a 4 month low) for the first time since Hurricane Katrina hit.

Treasuries remained near unchanged as traders digested the economically positive Initial Jobless Claims report, weak real estate data, and tame inflation data from the ISM Services report, but the main focus in the bond pits appeared to be preparation for tomorrow’s jobs report.

The Dow and S&P traded mixed and near unchanged as traders digested economic reports and retail sales report from various companies, though the Nasdaq was able to find decent gains on positive tech company news.

Among the big names making news in the market today were the retailers, Wal-Mart, Constellation Brands, Computer Sciences and Hewlett-Packard, and Fannie Mae.

Gold & Silver Stock News Update from GoldReview.com:

Barrick’s filed revised offer for Placer Dome, Newmont's completed permitting for a Nevada power plant, Seabridge’s new directors, Cardero’s copper mineralization intersected at their Baja IOCG project, Royal Gold’s closed deal to acquire royalties from Kennecott, and Hecla’s possible tax audit in Venezuela 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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