Weakening junior market volume, coupled with a slight pull back in gold toward the session’s end, led to further softening of the TSX Venture Exchange Index. The index fell more than 32 points to close at 1527.14 during the trading period July 14-20.
Gold closed out the period at US$401.40 per oz. in New York, close to where it began the week but off more than US$6 an ounce from the session’s high.
Bullion’s retreat is attributed to market anticipation of positive U.S. economic news by Federal Reserve Chairman Alan Greenspan. Short-term interest rates were raised a quarter of a point for the first time in four years in late June, a trend that is anticipated to continue in the near term. In his report to the U.S. Senate Banking Committee, the American Methuselah of monetary policy vowed to stay the course by tightening rates in reaction to slowly rising inflation, which has been spurred by rising energy costs.
Other metals had a generally positive week, with silver gaining 17 to close near a 3-month high US$6.60 per oz. Platinum and palladium showed strength, closing at US$837 and US$230 per oz., respectively. Platinum is approaching 60-day highs, possibly related to supply concerns following a strike-induced work stoppage at the Stillwater mine in Montana. Copper showed a slight gain by rising a few cents to close at US$1.28 per lb. The decline in the 30- and 60-day stocks of the red metal is showing signs of flattening. Meanwhile, a tight supply of nickel helped boost that metal’s price back over the US$7-per-lb. level, though stocks continue to show increases over recent weeks.
A pair of companies jointly exploring the Rice Lake gold project in eastern Manitoba proved to be the most active of the juniors.
Northern diamond explorer
Despite a buoyant silver market,
Be the first to comment on "Western markets beset by summer doldrums"