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Market: NYSE
Sector: Gold Mining
EPIC: GLD
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Gold is a chemical element with the symbol Au and the currency code is XAU. It is a highly sought-after precious metal which, for many centuries, has been used as money, a store of value and in jewelry. The metal occurs as nuggets or grains in rocks, underground "veins" and in alluvial deposits. Modern industrial uses include dentistry and electronics, where gold has traditionally found use because of its good resistance to oxidative corrosion.

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Gold and silver bounce around, gold and silver producers mostly rise in early deals

8th Feb 2010, 4:30 pm
Gold and silver bounce around, gold and silver producers mostly rise in early deals

After climbing in the early hours of the new trading week, spot Gold once again came under pressure as U.S. investors started to weigh into the market.  It was a fairly choppy start to the day for Gold, which initially rose as high as $1074 per ounce in European trading, but was quickly knocked back to $1062 by the time U.S. markets opened, only to bounce again, and is currently trading around $1070.  Nonetheless, even at $1070/ounce, gold is still up on the day. It was a similar story for Silver, though the extent of the pull back from earlier gains was sharper, leaving the metal down at $14.88/ounce, but like gold, has quickly recovered back above the $15 level.


Equity markets started the day down, but quickly recovered.   The NASDAQ and S&P 500 both bounced off early losses are currently trading around 0.25% higher.  Oil and Gold were outperforming equities, up around 1% and 1.5% respectively. Canadian stock markets followed the higher commodity prices.  The TSX climbed 6 points to 11,229, while the TSX Venture rose 8 points to 1,464.  Both markets were buoyed by good performances from energy and mining stocks.


Major mining stocks posted good gains this morning in both London, New York and Toronto.


Gold miner Randgold Resources (LSE: RRS, NYSE: GOLD) led the sector in London with a 5.5% advance, while the world’s largest primary Silver producer Fresnillo (LSE: FRES), and Platinum miner Lonmin (LSE: LMI) followed, climbing 4% and 1.5% respectively.


Goldcorp (NYSE: GG) was one of the brighter spots in New York, rising almost 1% after initially opening lower, as was Agnico-Eagle (NYSE: AEM) which rose 0.4%.  Emerging mid-tier gold producer CGA Mining (TSX/ASX: CGA) had a good run after announcing it had completed an $83 million placing. Shares in the company jumped nearly 11%.

 
Nevsun Resources (TSX: NSU), another success story in West Africa, was also on the move, climbing 8.7%.


Not all precious metal miners basked in the sun however.


In London’s FTSE 250, Aquarius Platinum (LSE: AQP) was flat, while mid-tier gold miner Petropavlovsk (LSE: POG) lost around 1%. Silver producer Hochschild Mining (LSE: HOC) pulled back 1.8%.


In New York, Tier 1 gold producer Newmont Mining (NYSE: NEM) started the day weaker, falling around 1.1%, while Barrick Gold (NYSE: ABX) also slipped, down 0.2%.

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