Gold breaks barrier as silver, nickel soar

A strong rally sent gold US$9.55 higher over the five trading days to a London morning fix of US$401.05 per oz. on Dec. 2. It’s the first time the yellow metal has surpassed the psychological barrier since January 1996, and the milestone was not lost on investors.

Canada’s majors all gained ground: Barrick Gold rose 99 to $29.15; Placer Dome jumped $1.98 to $24.15; and Kinross Gold climbed $1.09 to $12. Kinross was the most active of the three, with 13 million shares changing hands; it finished just shy of its 52-week high of $12.33. Both Barrick and Placer set new 52-week highs in intraday trading.

Also trading higher were Goldcorp, up $1.40 at $23.65, Meridian Gold, up $1.64 at $19.64, and Agnico-Eagle Mines, 73 higher at $15.40. Like the majors, Goldcorp had set a new 52-week high in intraday trading.

Once again, Wheaton River Minerals was the most active of the resource bunch, rising 75 on a staggering 73 million shares. The period close of $4.14 also represents a new 52-week high for the mid-tier producer.

Silver, too, traded higher, having gained a quarter to plant itself at US$5.46 per oz. on the morning of Dec. 2. Going along for the ride was Pan American Silver, which jumped $1.90 to set a new 52-week high of $18.10.

The breaking of records was not limited to precious metal producers: Aber Diamond touched a new 52-week high of $50 in intraday trading before easing back a quarter by the period’s close, at $48.75. The company, together with majority partner Rio Tinto, plans to push 13% more kimberlite ore through the Diavik mill to produce 33% more carats per year. Aber also inked a preliminary deal to take over high-end jeweler Harry Winston of New York.

Stepping to the growing beat of the U.S. economy, nickel climbed US17 in overseas markets. In-sync was Inco, the Western World’s largest nickel miner, which hit a 52-week high of $46.25 in intraday trading, before tailing off at a finish of $45.84, for a gain of $3.69.

Among juniors, Nevsun Resources slipped 54 to $6.46 despite having discovered a new massive sulphide zone at its Bisha project in Eritrea. The NW zone was defined over a strike length of 200 metres, and higher gold grades are reported in the stringer horizon than in the Main zone. The ongoing drill program also extended that Main zone some 250 metres along strike to the south and to a depth of 200 metres below surface.

Glencairn Gold had a lofty week, leaving the penny realm behind and touching a new 52-week high of $1.15 in intraday trading. By the period’s close, the junior had eased back a penny to $1.14, for a gain of 20.

Among the highest percentage gainers was UEX, which rose 11 to 25, for a gain of 79% in value. On Nov. 24, the company announced the discovery of three soil anomalies up-ice of radioactive boulders discovered on its Hidden Bay property in northern Saskatchewan. They also are 2.5-4 km southwest of the past-producing Rabbit Lake deposit, and each is anomalous in uranium, nickel, cobalt and arsenic.