The overall market took a beating as the Dow Jones industrial average plunged 512.30 points, or 4.7%, during the report period ended May 23 to close at 10,422.27. The Nasdaq also continued its losing ways.
However, the strong U.S. dollar is still holding down the price of gold. Anticipation of Britain’s latest sale of 25 tonnes of the yellow metal gave a bit of a boost to the price, though this was reversed after the sale. Spot prices on the Comex division of the New York Mercantile Exchange were US$274.40 per oz.
As a result, South Africa’s AngloGold slumped $1.13 to a new low of US$18.52. Other miners were off, including: Meridian Gold, which dropped 44 to US$6; Hecla Mining, which hit a new low of US$1.19, down 12; Coeur d’Alene Mines, which slipped 44 to US$2.50; and Peru’s Buenaventura, which fell $1 to close at US$16.62. However, Buenaventura’s partner at Yanacocha, New York Stock Exchange-listed Newmont Mining, weathered the onslaught, ending the week up 13 at US$25.44.
Class A shares of Freeport-McMoRan Copper & Gold dropped $1.44 to US$10.06 in further fallout from the tailings accident at Grasberg, Indonesia, that killed four. As a result, it will curtail production at the operation.
Copper producer Phelps Dodge dropped $1.19 to close at US$50.56, while Southern Peru Copper slipped 37 to US$12.25. Rio Tinto was off $1.06 to US$66, while Australia’s Broken Hill Proprietary slid $1.19 to US$19.56.
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