MINING MARKETS & INVESTMENT NEWS — U.S. MARKETS — Falling gold wipes out gains

The Dow Jones industrial average climbed 140.04 points, or 1.3%, to 11,026.15 during the report period ended May 11.

Heavy trading marked the week as the bottom fell out of the gold price after the British government announced plans to sell 60% of its gold reserves. The spot price of the yellow metal on the Comex division of the New York Mercantile Exchange fell 3% to US$278.10 per oz., wiping out impressive gains made by gold producers in recent weeks.

Among the many losers was American Stock Exchange-listed Getchell Gold, which plunged $4.06 to US$30.19. Newmont Mining, listed on the New York Stock Exchange, dropped $3 to close at US$20.88 after trading 15.6 million shares. Homestake Mining, which traded nearly 13 million shares, lost only 38 cents to close at US$9.06.

South Africa’s Anglogold slipped $1.75 to US$21.56, while Ghana’s Ashanti Goldfields slumped $1.12 to US$7.88 and Peru’s Buenaventura lost $1.62 to close at US$14.88.

Copper issues were mixed as the Comex spot price held steady at US71 cents per lb. Southern Peru Copper posted the strongest gain among producers, jumping $1.19 to US$14.44, near a 12-month high. Class A and B shares of Freeport-McMoRan Copper & Gold rose 37 cents and 56 cents to close at US$16.06 and US$16.94, respectively.

Phelps Dodge retreated $1.44 to US$63.81 following five weeks of impressive gains, and Australia’s Broken Hill Proprietary lost $1.12 to close at US$22.19.

Platinum producer Stillwater Mining gained $1.25 to close at US$29.75.