Rate cut propels market rally

Denver — The Dow Jones industrial average continued climbing after the U.S. Federal Reserve announced a surprise interest rate cut of 0.5%. The market finished the April 18-24 report period up 237.61 points, or 2.3%, at 10,454.34. The Nasdaq closed above 2000 for the first time since mid-March.

Spot gold on the Comex division of the New York Mercantile Exchange rose to US$264.10 per oz., pushing up most mining issues. South Africa’s AngloGold surged $1.01 to close at US$17.50, while Newmont Mining added 40 to close at US$17.15. Meanwhile, New York Stock Exchange-listed Meridian Gold jumped 80 to a new high of US$7.85, and Nasdaq-listed Gold Fields bounded up 36 to US$4.48. Glamis Gold improved 13 to US$2.

Comex copper held firm at US76 per lb., though Phelps Dodge gained $1.45 to close at US$43.54 after announcing cost-cutting measures aimed at saving US$30 million in 2001. Australia’s BHP rose $1.60 to 22.70, and Rio Tinto advanced $2.79 to US$79. Class A and B shares of Freeport-McMoRan Copper & Gold dipped 8 and 23 to close at US$12.65 and US$14, respectively.

Anglo American spiked up $6.89 to US$64.90, propelling De Beers Consolidated Mines up 57 to US$38.95, despite reports that significant De Beers shareholders were dissatisfied by the Anglo takeover offer.

Silver miners perked up as the metal showed renewed signs of life. Apex Silver Mines jumped $1.14 to US$8.74, while Coeur d’Alene Mines picked up 13 to close at US$1.20. Platinum-producer Stillwater Mining added 24 to close at US$28.90. Nasdaq junior Royal Gold rose 10% to US$2.75, up 25.

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