There were modest gains in the U.S. stock markets over the report period May 26-June 1, with the S&P 500 index adding 8.15 points to close at 1,121.20 and the Dow Jones Industrial Average adding 85.03 points to finish at 10,202.65.
A positive atmosphere in the broader market generally spells a retreat in the gold equities, and this period was no exception, even as gold bullion prices were rising more than US$8 at the same time. Newmont Mining gave back US66 to finish at US$39.06, Compania de Minas Buenaventura lost US53 to close at US$22.82, and Randgold Resources slipped US51 to end the period at US$17.76.
The South Africans were mostly better, with Gold Fields up US30 to US$11.52, Harmony Gold Mining up a dime at US$11.54, and Durban Roodepoort Deeps US27 higher at US$2.82.
In a bizarre episode, AngloGold Ashanti reported in early June that its ostensible partner, the Guinean government, had lifted an embargo on the company’s 85%-owned Siguiri gold mine “without explanation.” Production had been halted for almost a week after the government, which owns the remaining 15%, stopped AngloGold from exporting gold or bringing diesel fuel to the mine, which yielded 58,000 oz. gold last quarter. AngloGold closed down US19 to US$34.39.
Over in base metals, Phelps Dodge was down US35 at US$68.30, Southern Peru Copper slipped a dime to US$31.70, Rio Tinto was US$1.92 higher at US$97.52, BHP Billiton rose US22 to US$17.22, and Anglo American tacked on US62 to close at US$21.43.
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