US markets rebound over Aug. 2-6

Markets rose during the Aug. 2-6 trading period, shortened due to the Civic Holiday, with some of the major mining companies making some significant gains and gold rising back over the US$1,200 per-oz.-level.

But first, looking at the indexes, the Dow Jones Industrial average was up 1.8%, or 187.62, points to close at 10,653.56.

The S&P 500 Index also rose 1.8%, or 20.04 points, to close at 1,121.64 points while the Nasdaq increased 1.5%, or 33.77 points, to 2,254.70.

Gold’s 3.3% or US$38.75 rise in price to US$1,207.75 helped push the Philadelphia Gold and Silver index up 3.4%, or 5.77 pints to 175.49 while the Amex Gold Bugs index rose 3.9%, or 17.3 points, to finish the week at 459.94 points.

Major gold miners on the rise included Agnico-Eagle Mines, up US$3.94 to US$59.69 per share, Barrick Gold, up US$2.29 per share to US$43.39, Newmont Mining up US$1.14 to US$57.04 per share.

However, Randgold Resources was the top loser by value, with falling US$3.66 per share to US$86.62, after the West Africa-focused miner announced that costs had risen 39% to US$665 per oz. while power cuts reduced output over the last quarter. The company still said that it would be within 5% of its 2010 production goal of 477,000 oz. gold.

Purvian miner Buenaventura Mining shares fell US$2.17 to US$36.44. The Peruvian government gave Buenaventura and Newmont the final nod for starting operations at the La Zanja gold mine, which will produce 100,000 oz. gold per year. Buenaventura owns 53% of the mine while Newmont holds the remainder.

And Kinross Gold was also down slightly after announcing plans to buy Red Back Mining in a friendly US$7.1-billion deal. Kinross shares fell US63¢ apiece to US$15.76 per share.

Potash Corp. of Saskatchewan shares saw a dramatic rise over the period, rising US$8.67 per share to US$113.54 after profit more than doubled in the second quarter thanks to higher potash prices. Potash Corp. reported net earnings of US$472 million, up from US$186.2 million in the second quarter of 2010.

Mountain Province Diamonds was one of the most significant gainers on a percentage basis with shares rising 23% to US$3.63 apiece after valuation results were released from its Gahcho Kue project in the Northwest Territories. WWW Diamonds International valued 8,243.56 carats at US$134.06 per carat for a total of US$1.1 million. The company is planning to complete a feasibility study by the end of this month.