Other stocks fell sharply but Canadian mining majors rose with another increase in gold and silver prices, according to Reuters. Gold hit $1,602.86 before sliding to $1,599.49, while silver reached a two-month high of $40.44.
Continuing fears of debt and default in Europe and the US, as well as pessimistic stress tests for European banks, pushed down stock markets around the world. The S&P/TSX composite index dropped 55 points, or 0.41%, to 13,244 midday Monday. But the giant gold miners ranked among the few winners.
Barrick Gold, the world’s top gold producer, rose 1.7% to US$49.13 a share on the NYSE, and 2% to C$47.10 on the TSX. The NYSE saw Newmont Mining rise 2.2% and Goldcorp 1.3%.
The US Commodity Futures Trading Commission reports that gold futures and options gained substantially in the week ending July 12. “CFTC data shows a surge into gold so despite the higher levels, the professionals have returned to gold with a vengeance,” said Saxo Bank analyst Ole Hansen.
Other precious metals also rose, with spot platinum XPT climbing from $1,748 to $1,766.24 an ounce, and spot palladium XPD from $771 to $788.22 an ounce.
by Greg Klein