U.S. Markets up for 7th straight week as gold slips over Jan. 10-14 period

As European stocks advanced for the second straight week, banks and technology companies, led by JPMorgan Chase, sent U.S. stock indexes higher, marking a seventh week of gains.

The Dow Jones industrial average gained 112.62 points, or 1%, to close the report period Jan. 10-14 at 11,787.38, its highest level in two and a half years. The S&P 500 index rose 21.74 points to finish the week at 1,293.24, up 1.7%. Nasdaq was up 1.9% at 2,755.3.

The price of gold slipped US$8.50 over the week, ending at US$1,360.50 per oz. as China once again moved to curb inflation by raising the amount of money banks must keep on reserve, for the seventh time in a year. Barrick Gold fell US$2.02 to end at US$47.08.

The Philadelphia Gold and Silver index dropped 5.58 points, or 2.6%, finishing at 205.72. Silver Wheaton closed at US$31.70, down US$1.81, while Hecla Mining was off 44 cents at US$9.58.

The spot price of silver was off 25 cents at US$28.48 per oz., while copper tacked on a dime to finish the period at US$4.38 per lb. Freeport-McMoRan Copper & Gold was up US$1.38 at US$118.35.

Cliffs Natural Resources closed out the week at US$88.84 for a gain US$7.51 on news that it was making a friendly $4.9-billion takeover of iron ore producer Consolidated Thompson Iron Mines in an all cash transaction. The $17.25 per share offer represents a 30% premium to Consolidated Thompson’s closing share price as on Jan. 10.

An 80% majority of striking Voisey’s Bay nickel mine workers in Labrador have voted in favour of a settlement proposed by an industrial inquiry commission, ordered by Newfoundland and Labrador’s former premier Danny Williams. Mine owner, Brazilian nickel giant Vale, has rejected the settlement proposed by the commission, stating that this dispute must be resolved by the parties at the table. The strike at Voisey’s Bay is now 18 months long. Vale was up US$1.36 on the week at US$36.15 as the spot price of nickel jumped 7% to US$11.73 per lb.

Northern Dynasty Minerals continued its upward ascend, adding US$2.56 to end at US$16.83, up 18%. With no recent news to report, Northern Dynasty and joint venture partner Anglo American are advancing the Pebble copper-gold project in southwest Alaska towards completion of a prefeasibility study by the end of 2011. The project contains measured and indicated resources of 5.9 billion tonnes of 0.42% copper and 0.35 gram gold, equal to 55 billion lbs. copper and 67 million oz. gold. Inferred resources hold another 26 billion lbs. copper and 40 million oz. gold in 4.8 billion tonnes of 0.24% copper and 0.26 gram gold.