U.S. Markets, commodity prices end week on a down note

Markets finished the week with a sharp pullback as European debt fears and China inflation worries spooked investors. The Dow Jones industrial average tumbled 251.5 points, or 2.2%, to close the Nov. 8-12 trading week at 11,192.58, while the Nasdaq composite index lost 60.77 points, or 2.4%, to end at 2,518.21.

The S&P 500 index had its biggest weekly drop in three months, shedding 2.2%, or 26.64 points, to close at 1,199.21. Gold touched a new high of US$1,424 per oz. at the start of the week before taking its biggest hit in four months, dropping 2.3%, or US$32 per oz., to finish the week off at US$1,365.50 per oz. The Philadelphia Gold and Silver index managed to hold on to some of its gains during the report period, closing at 216.10, up 0.6%.

Haywood Securities attributes the drop in gold price to speculation that China will raise domestic interest rates to combat inflation. “Nonetheless, given lingering concerns over sovereign debt issues in Europe and declining growth prospects in EU member states, gold and gold equities retain their safe-haven buying appeal,” Haywood Securities states in its weekly metals commentary.

In other commodities, the spot price for copper slipped 3 cents to US$3.91 per lb, silver was off 67 cents, or 2.5%, to US$26.06 per oz. and crude oil lost US$1.97, or 2.3%, to end the week at US$84.88 per barrel.

Freeport-McMoRan Copper & Gold was off just 0.9% on the week, closing at US$103.92, down 92 cents. Barrick Gold closed up US$1.52 to US$50.73, while Goldcorp tacked on 24 cents to finish at US$46.44. Silver producer Hecla Mining was the most active issue in the U.S. markets, trading up 48 cents to US$8.41.

BHP Billiton shed US$5.17 to close the trading week at US$86.97 after officially conceding defeat and retreating from its hostile takeover bid for Saskatchewan-based PotashCorp. The move comes less than 2 weeks after the Canadian government rejected its US$39-billion unsolicited bid as not having a net benefit for Canada. BHP Billiton says the condition of its offer cannot be satisfied under the Investment Canada Act, and accordingly, has withdrawn its offer.

Texas-based Uranium Resources jumped 92 cents to end the week at US$2.67. The junior, which is exploring for uranium in Texas and New Mexico, recently raised US$9 million in net proceeds through a public offering of 8.2 million shares priced at US$1.16 per share. The company also announced it struck a letter-of-intent option agreement with a subsidiary of Cameco with regards to a land package in south Texas.