Gold weakens on Dow’s rebound

The Dow Jones industrial average climbed 357.40 points, or 3.3%, during the report period ended April 25 to close at 11,124.82. The gain came on the heels of a strong rally with the Nasdaq, which did not augur well for the mining industry.

Spot gold on the Comex division on the New York Mercantile Exchange dropped to US$278.10 per oz., sending most producers down. South Africa’s AngloGold plunged $1.43 to close at US$21.19 on the New York Stock Exchange; Newmont Mining fell 31 to close at US$23.19; Ashanti Goldfields dipped 25 to US$1.94; Nasdaq-listed Gold Fields slipped 25 to US$3.25; Harmony Gold Mining lost 56 to US$4.78; and Lihir Gold slumped to a new low of US$7, down $1. Bucking the trend was Meridian Gold, which picked up 26 to finish at US$5.88.

Copper companies were mixed as the red metal held steady on Comex at US79 per lb. Phelps Dodge gained $1.87 to close at US$45.12; Broken Hill Proprietary added $1 to close at US$21.88; Rio Tinto gained $6.25 to close at US$66.50, after a steep plunge last week; and Southern Peru Copper added 38 to close at US$12.50.

The platinum bubble burst for Stillwater Mining, which plunged $8.69 to US$27.31, as the market responded to the company’s cutting its 2000 production forecast by 10%.

De Beers Consolidated Mines perked up $1.56 to close at US$20.44, while silver miner Coeur d’Alene Mines picked up 25 to close at US$2.69. Australia’s Western Mining added 57 to close at US$16.69 on trading on New York.

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