Rising gold shares were set off in contrast to most other market sectors after a poor three trading days on the U.S. exchanges, Dec. 23-27. The Dow, declining 207.54 points to 8,303.78, and the S&P 500, sliding 20.36 points to 875.40, had almost identical declines in percentage terms, as rising oil prices contributed to a generally bearish temperament on the markets.
Further international tensions worked on the gold price, which touched US$350 per oz. during the report period. That played out among the gold shares, with the big one, Newmont Mining, up US$1.12 at US$29.73. The South African houses saw gains too, as AngloGold jumped US$2.61 to US$34.81, Gold Fields rose US75 to US$14.50, Harmony Gold Mining up US90 at US$17.70 and Durban Roodepoort Deeps tacking on US16 for a close of US$4.21.
For the smaller producers, the proportional gains were even bigger: Hecla Mining was up US37 at US$5.06, and Coeur d’Alene Mines rose US11 to US$1.80. U.S. juniors didn’t show the same surge, though Commerce Group added a dime to finish at US30.
Base metal issues didn’t find the golds’ refuge from economic gloom. Phelps Dodge, the bellwether of the copper producers, was off US44 at US$31.36, despite positive news in the copper markets that Grupo Mexico’s Mission operations were being cut back further. G-Mex affiliate Southern Peru Copper did better, adding US24 to close at US$14.38. Freeport-McMoRan was up US35 at US$16.70, but parent Rio Tinto led the big internationals down US37 at US$79.13; Anglo American was off US5 at $14.65, while BHP Billiton clawed up a penny to US$11.26.
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