Market eyes rate cut

Denver — The Dow Jones industrial average climbed 231.39 points, or 2.2%, to 10,881.20 during the report period ended Jan. 30, in anticipation of the 0.5% interest rate cut by the U.S. Federal Reserve Board on Jan. 31.

Gold issues fell as spot gold on the Comex division of the New York Mercantile Exchange slid to US$265.50 per oz. Newmont Mining dropped $1.29 to close at US$15.59 on heavy volume; South Africa’s AngloGold was off 68 to US$14.26; Homestake Mining lost 22 to close at US$4.84; Nasdaq-listed Harmony Gold Mining shed 31 to US$4.81; and Meridian Gold slipped 34 to US$6.28. Bucking the downward trend, Gold Fields climbed 17 to US$3.94 and Durban Roodepoort Deeps rose 16 to US91. Peru’s Compania de Minas Buenaventura jumped $1.58 to close at US$15.80.

Phelps Dodge fell $2.62 to close at US$46.32 as Comex copper sunk to US84 per lb. Freeport-McMoRan Copper & Gold retreated after strong gains, with A and B shares falling 35 and 44 to close at US$10.80 and US$11.44. Southern Peru Copper advanced 53 to US$13.78 on news of strong fourth-quarter earnings.

Anglo American continued climbing, up $2 to US$63, while De Beers Consolidated Mines jumped $1.87 to US$32.06. Rio Tinto slipped $3.06 to US$70.50 as subsidiaries released quarterly earnings.

Palladium prices held steady above US$1000 per oz., though Stillwater Mining sunk $1.05 to US$37.95. Coeur d’Alene Mines rose 13 to US$1.57 and Apex Silver Mines advanced 50 to US$9.75 as silver continued to improve.