U.S. markets close down fourth week in a row, May 23-27

U.S. markets closed their fourth week of losses with the Dow Jones Industrial Average shedding 0.56% to close at 12,441.58 and the S&P 500 index dropping 0.16% to 1,331.10. Weaker-than-expected U.S. consumer spending and housing data didn’t help inspire much confidence in the economic recovery. Europe’s debt crisis, however, further boosted the appeal of gold, with spot gold peaking at US$1,538.10 per oz., its highest level since May 4.

Randgold Resources and Buenaventura were the two top gold performers during the May 23-27 trading week. Randgold increased US$3.34 to close at US$81.18 on no news, while Buenaventura advanced US$3.27 to US$44.34, despite the start of a strike at its Orcopampa mine in Peru. Copper and gold producer Freeport McMoRan Copper & Gold jumped US$3.35 to close the week at US$51.73, on no news. Shares of junior Kimber Resources surged  31.2% to US$1.68 after results from a further eight holes at its Carmen deposit in Mexico included an intercept of 5.2 metres grading 51.9 grams gold per tonne and 1,076 grams silver.

The biggest gains of the week went to the potash players. Agrium, which on May 25 attended celebrations in New York to mark its fifteenth year of being listed on the New York Stock Exchange, gained US$6.51 to US$86.45. The company also announced last week that it had reached a binding agreement to acquire International Mineral Technologies, or Tetra Micronutrients, a Nebraska-based company specializing in the production, marketing and distribution of custom liquid plant nutrition and dry micro nutrient products, predominantly zinc sulphate. Tetra Micronutrients’ annual revenues are more than US$60 million.

Mosaic, meanwhile, advanced US$4.62 to US$70.04. On May 25 Mosaic announced that it had completed the transaction to split off and distribute Cargill’s stake in the company – a move Mosaic says will improve its “strategic and financial flexibility and increase liquidity of stock.” Potash Corporation of Saskatchewan claimed the third spot with a jump of US$3.95 to US$55.99.

Finally, America West Resources surged 33.3% to US$1.80 per share following news May 26 that it had completed mine development and started full production at its Horizon coal mine, 193 km southeast of Salt Lake City, Utah. The company estimates thermal coal reserves under lease at the Horizon mine add up to more than 16 million recoverable tons.