Leading up to the G-20 weekend meeting of finance ministers, U.S. stocks ended higher for the third straight week at the close of the report period ended Oct. 22. The Dow Jones industrial average added 69.78 points to close at 11,132.56, an increase of 0.63%. The Nasdaq composite was up 10.62 points, or 0.43%, to finish at 2,479.33, while the S&P 500 index ended the week at 1,183.08, up 6.89 points, or 0.59%.
On the commodities side, crude oil for December delivery lost 0.3% to end the week at US$81.69 per barrel, marking the third consecutive week of losses. Gold also retreated off historic highs, losing US$43.80 per oz. to finish at US$1,325.10, down 3.2%. The New York spot price for silver closed at US$23.29 per oz., a decrease of US$1.03 per oz., or 4.2%.The Philadelphia Gold and Silver index followed suite, off 4.5%, or 9.24 points, to end the Oct. 15-22 week at 196.82.
Among the active traders, Freeport-McMoran Copper & Gold, Barrick Gold, Hecla Mining, Silver Wheaton, Kinross Gold and Newmont Mining all ended the week down, due to lower metal prices.
Despite a 20% jump in third-quarter profit and a 67% hike in its dividend to shareholders, Freeport-McMoran was off US$4 at US$94.05. The company announced it has increased its annual common stock dividend to US$2 per share.
In recent weeks, the U.S. government has made steps targeting the production of rare earth metals. Earlier this month, the U.S. House of Representatives passed the Rare Earths and Critical Materials Revitalization Act of 2010, which supports the discovery and development of rare earth sites in the states. Canadian-based Rare Element Resources has made sharp gains and was up US$2.46 at US$10.11. The company’s 100% owned Bear Lodge project in Wyoming is being touted as containing one of the largest disseminated rare earth deposits. A month ago, the junior released details of a preliminary scoping study.
Uranium producer and explorer Denison Mines closed higher at US$2.17, up 17 cents. Denison released assay results for the remaining holes of a summer drilling program on the new high-grade Phoenix uranium discovery in the Athabasca Basin of northern Saskatchewan. Results included 10 metres grading 12.41% U3O8. A resource estimate is expected sometime in the fourth quarter. The Phoenix discovery occurs on the Wheeler River property, held 60% by Denison, 30% by Cameco and 10% by JCU Exploration.
Pediment Gold closed up 26 cents to US$2.01 on news that it has agreed to merge with Argonaut Gold. Pediment shareholders will receive 0.625 of an Argonaut share for each share held.
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