U.S Markets

Volatility remains the buzzword following a roller-coaster ride of a week on Wall Street that saw indexes plunge to multi-month lows before rebounding to modest weekly gains. The Dow Jones Industrial Average fell to 12,315.95 before making a recovery that saw the index finish up 85.45 points, or 0.7% at a 12,454.83 close, while the S&P 500 Index also hit mid-week lows before rebounding to close the week at 1,317.82, up 22.6 points, or 1.74%. The Nasdaq Composite Index followed suit with a 2.11%, or 58.74-point gain en route to a 2.837.53 weekly close, while the Philadelphia Gold and Silver Index rebounded 10.07 points, or 6.82%, to 157.83.

Global uncertainty around the Euro crisis weighed on markets early in the week before speculation that Greece’s pro-bailout parties may have the upper hand in the country’s June 17 elections buoyed market sentiment. Investors also watched increasing banking turmoil in Spain, where the government is coping with liquidity issues at its central lender, Bankia Group. U.S. news was a mixed bag as demand for long-lead factory goods posted gains in April, but key metrics tracking business investment expenditures fell for a second straight month. U.S. unemployment applications declined this past week.

Gold companies were beneficiaries on the value side as spot prices remained resilient, holding above US$1,570 per oz. gold. Royalty company Royal Gold posted the largest gain at $6.27 before closing at $69.03. The company declared its third-quarter dividend of 15¢ per share mid-week, and crossed above its 200-day moving average of $69.71 briefly during trading.

West Africa-focused gold miner Randgold Resources registered a $4.51 gain en route to an $80.96 close, while Agnico-Eagle Mines, Newmont Mining, Goldcorp and Barrick Gold were also on the rise.

Junior explorer Extorre Gold rose 33.4% to close at $3.35 on news that it had adopted a shareholder rights plan. Extorre, with its advanced-stage Cerro Moro property in Argentina, is considered a prime takeover target in the gold sector, and the new plan protects the company’s shareholders in the case of a bid by any single or joint entity to acquire more than 20% of Extorre’s shares.

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