MINING MARKETS & INVESTMENT NEWS – U.S. MARKETS — Higher prices buoy producers

A surge in gold and silver prices helped U.S. producers, while the Dow Jones industrial average slid 50.46 points (0.5%) to finish the report period ended Feb. 2 at 9,274.12.

Gold producers benefited from comments made by European Central Bank President Wim Duisenberg, who said the bank intended to hold its gold. The remarks, made at a conference in Switzerland, outweighed a proposal by President Bill Clinton to liquidate 5% of the gold reserves of the International Monetary Fund. The expected proceeds of US$1.4 billion would be used to furnish debt relief for poor countries.

The yellow metal ended the week higher, helping New York-listed Newmont Mining up 62 cents to US$18.56. Homestake Mining, meanwhile, climbed 37 cents to US$10.06, while Ashanti Goldfields gained 56 cents to finish at US$9.06. Getchell Gold, listed on the American Stock Exchange, rose $2.50 to close at US$28.25.

Bucking the trend, Battle Mountain Gold lost 19 cents to close at US$3.81 on heavy trading. Falling stockpiles sent silver upward, carrying Apex Silver Mines with it. Apex closed up a dollar to US$8.75, whereas Coeur d’Alene Mines advanced 75 cents to US$5.56 and Peru’s largest silver-producer, Buenaventura, added $1.25 to close at US$13.50.

Copper producers continued their slide, with Phelps Dodge leading the way again. The Arizona-based producer lost another $3.13 to hit a new low of US$43.12. It has lost 20% of its value in the last three weeks. Asarco hit a new low of US$13.81, down $1.