STOCK MARKETS — Golds post modest gain on TSE

The Toronto Stock Exchange stayed true to form over the report period ended Jan. 28, with the broad market and the base metals heading in one direction, and the golds in another. But, for a change, the long-suffering golds posted a modest gain while the rest of the market fell.

The TSE 300 composite index slid 29.27 points, representing 0.5% of value, to close Jan. 28 at 6,046.71. Continuing anxiety in the U.S. equity markets, especially the fear that the U.S. Central Bank will tighten monetary policy, is spilling over on to Bay Street.

Whether that fear has any basis is another question, as the U.S. dollar continued to roll over the other Western currencies. The Canadian dollar escaped with minor trim damage, losing 56 basis points on the week to trade at US74.33 cents at noon on Jan. 29.

London bullion prices were volatile, trading as low as US$348 per oz. and as high as US$357.25, but the Jan. 29 morning fix price was US$350.15 per oz. — only a nickel higher than it was a week before. Platinum finished the week at US$354.50 per oz., down $2. Silver was the week’s success story, rising 22 cents to finish at US$4.92 on Jan. 29 as predictions of higher industrial demand made the rounds.

The London Metal Exchange spot markets had a relatively sedate week, with all the base metals trading in narrow ranges. The big story was copper, whose spot price has opened a large gap over future prices. Copper finished the Jan. 29 ring session at US$2,530 per tonne — $295 higher than 3-month contracts and $480 higher than the 15-month contract. The other base metals were all fractionally lower.

The TSE metals and minerals sub-index, which had done well in recent weeks, took a 146.87-point hit to close Jan. 28 at 5,386.18. Aur Resources was the volume champion, with 5.4 million shares trading. The mid-size miner added 55 cents to close at $7.95. Another of the smaller issues in the sub-group, Westmin Resources, saw 3.9 million of its shares trade, and closed 50 cents lower at $6.55. Noranda was down 25 cents at $32.05 and Inco fell $1 to close at $44.70.

The ongoing Busang saga continued to take its toll on two of the players involved, while the third gained a few pounds during the week.

Gold-finder Bre-X Minerals dropped 90 cents to close at $21.70 with 4 million shares traded, while takeover hopeful Placer Dome shed 40 cents to close at $27.90 with a 10 million-share trading volume. Barrick Gold climbed 70 cents to close at $36.85 with more than 6 million shares changing hands.

After announcing that two drill holes intersected kimberlitic-textured rocks on their property, partners Ashton Mining of Canada and Pure Gold Resources each saw their share price rise by 62% and 48%, respectively. The former climbed to $1.75 from $1.08, while the latter increased to 31 cents from 21 cents in the previous week. Pure Gold was the most actively traded issue during the week, with 12 million shares crossing the counter.

TVX Gold continued to climb, closing at $10.70, up 65 cents from the previous week. Golden Rule Resources, which saw 8.9 million shares change hands, gained $1.85 to close at $12.75. The rise came on the tail-end of the previous week’s report of positive results from the joint-ventured Stenpad property in Ghana and glowing reviews from analysts.

Having lost $3.85 in the previous week, Potash Corp. of Saskatchewan continued to take a beating, dropping a further $3.40 to close at $112.