Dow drops as gold edges higher

The Dow Jones industrial average dropped 194.37 points, or 1.8%, during the report period ended May 9 to close at 10536.75.

Spot gold on the Comex division of the New York Mercantile Exchange picked up to close at US$277 per oz., though mining companies were mixed. Mid-sized Meridian Gold led the gainers, jumping $1.19 to close at US$6.81, while Newmont Mining was the volume leader for the week, up 50 to US$26.88 on the New York Stock Exchange. Homestake Mining climbed 19 to US$6.88, while Nasdaq-listed Lihir Gold picked up 69 to close at US$7.50.

South African gold producers were not so lucky: AngloGold slipped $1.87 to US$19.69; Nasdaq-listed Harmony Gold Mining dumped $1.44 to close at US$5.25; and Gold Fields lost $1.32 to close at US$3.62.

Spot copper held firm at US83 per lb. on the Comex for the week, though Broken Hill Proprietary fell $2.81 to close at US$20.19. Meanwhile, Rio Tinto slid $2.12 to close at US$66.94, Southern Peru Copper slumped 38 to US$12.56 after declaring a 5 quarterly dividend, and Phelps Dodge bucked the trend, climbing to US$50.44, up $1.69.

Nasdaq junior Royal Gold advanced 43 to close at US$3.81, while diamond miner De Beers Consolidated Mines added 44 to close at US$21.38. Meanwhile, Stillwater Mining continued its slide, falling 81 to end up at US$28.50. The platinum producer has lost 30% of its value over the past six weeks, as the prices of platinum and palladium settled back.