Gold weakens in turbulent market

After a steep drop and a strong rise, the Dow Jones industrial average finished the report period ended Feb. 1 almost unchanged, up only 11.16 points, or 0.1%, in anticipation of an interest rate hike. Meanwhile, spot gold on the New York Mercantile Exchange slid to US$282.50 per oz.

Mining issues were generally down, except for a few bright spots. New York-listed Newmont Mining advanced 50 to US$19.88 on the strength of positive earnings, while its partner at the Yanacocha gold mine in Peru, Buenaventura, gained $1.50 on a news of a 60% reserve increase at the operation.

Platinum producer Stillwater Mining, listed on the American Stock Exchange, was up 81 to US$34.06, though intra-week trading saw it rise as high as U$38 as the platinum group metals continued their charge.

On the downside, South Africa’s Anglogold dropped $1.50 to close at US$24.44; West Africa’s Ashanti Goldfields was off 25 to US$2.68: Homestake Mining hit a 12-month low of US$6.31, down 12; and mid-sized Meridian Gold fell 94 to US$5.

Phelps Dodge led copper miners with a gain of 25 to US$58.88. Class A and B shares of Freeport-McMoRan Copper & Gold were up 31 and down 19, respectively, to close at US$16 and US$17.44. Australia’s Broken Hill Proprietary lost $1.50 to close at US$23.75; and Rio Tinto plunged $4.75 to close at US$76.

Australia’s Western Mining, listed on New York, tumbled $1.12 to US$19.81. Apex Silver Mines dipped 44 to US$10, though Coeur d’Alene Mines was up 13 to US$3.38.