Golds slump in weak market

Dow 36,000 receded further into the distance over the report period Oct. 1-8, with the bellwether U.S. stock index plunging 437.30 points to finish at 7,501.49. But the gold stocks, which have been feeding on weakness in the broad market, fell as gold prices tumbled more than $5 to test US$320 per oz.

The broader-based S&P 500 index had an even worse time than the Dow, sliding 49.36 points, or 5.8% of its value, during the same period to close at 798.55 on Oct. 8.

With gold at its lowest in weeks, the U.S.-listed gold majors declined across the board. Newmont Mining fell $2.56 to US$26.88, while South African house AngloGold declined $2.45 to US$26 and cross-town rival Gold Fields was down $2.29 to US$11.51.

Similarly, the smaller African producers had a tough week; Ashanti Goldfields retreated 73 to US$5.26, Durban Roodepoort Deeps slid 39 to US$3.96, and Harmony Gold moved south $1.94 to US$14.66.

Silver prices were down as well, with predictable effect: Coeur d’Alene Mines fell 17 to US$1.57, Hecla Mining dropped 51 to US$3.39, and Apex Silver Mines sank $2 to US$13.

The base metal miners were mixed, with both large U.S. copper producers doing well: Phelps Dodge tacked on $2.71 to US$24.93 and Freeport-McMoRan Copper & Gold added $1.30 to US$13.50. Among the large overseas companies trading on New York, Anglo American rose $2.11 to US$13.50, BHP Billiton was up 96 to US$10.38, Rio Tinto advanced $4.22 to reach US$66.67, and CVRD was off 30 to US$23.55.