U.S. equities ride the roller coaster May 22-25

VANCOUVER — Volatility remains the buzzword following a mixed week on Wall Street that saw indexes plunge to multi-month lows before rebounding to post modest weekly gains. The Dow Jones Industrial fell to lows of 12,315.95 on Wednesday before making a recovery that saw the index finish up 85.45 points or 0.7% at a 12,454.83 close, while the S&P 500 also hit mid-week lows before rebounding to close the week at 1,317.82, up 22.6 points or 1.74%. The Nasdaq Composite followed suit with a 2.11% or 58.74 point gain en route to a 2.837.53 weekly close, while the Philadelphia Gold and Silver index rebounded 10.07 points or 6.82% to close at 157.83.

Global uncertainty around the Euro crisis weighed on markets early in the week before speculation that Greece’s pro-bailout parties may have the upper-hand in the country’s June 17 elections buoyed market sentiment. Investors also coped with increasing bank turmoil in Spain, where the government is coping with liquidity issues at its central lender, Bankia Group. Domestic U.S. news continued to be a mixed bag, as demand for long-lead factory goods posted gains in April, but key metrics tracking business investment expenditures declined for a second straight month. U.S. unemployment applications declined this past week.

Gold companies were big beneficiaries on the value side, as royalty company Royal Gold posted the largest gain at $6.27 before closing at $69.03. The company declared its third quarter dividend of 15¢ per share mid-week, and crossed above its 200-day moving average of $69.71 briefly during Friday trading.

West African gold producer Randgold Resources registered a $4.51 gain en route to an $80.96 close, while major industry players Agnico-Eagle, Newmont Mining, Goldcorp, and Barrick Gold were also on the rise.

Junior explorer Extorre Gold experienced a large percentage gain, rising 33.4% to close at $3.35 on news that it had adopted a shareholder rights plan. Extorre along with its advanced-stage Cerro Moro property in Southern Argentina have been considered a prime take-over target in the gold sector, and the new plan protects the company’s shareholders in the case of a bid by any single or joint entity to acquire more than 20% of Extorre’s shares.

International Tower Hill Mines posted a 26.7% gain en route to a $3.55 close. The company is currently seeking a new president and CEO after James Komadina stepped down in mid-May. International Tower Hill is also in the midst of a review of its finances and development alternatives vis-à-vis its Livenpool gold project near Fairbanks, AK.