Gold rally leaves markets higher

Gold stocks across North
America, Australia and South Africa
soared today, with the TSE topping
the hot markets.

Among the big gainers were
Newcourt Mining, which
closed up US$5 at 27 15/16,
Placer Dome, up C$3.80 to
$21.35 in late trading, and
Barrick Gold, up C$3 5/8 to
$15 7/16.

Consequently, the TSE 300 jumped
132 points to close at 6895.38.
Trading on the VSE, home of the
mining penny stocks, was also
brisk today, and in late-day
trading it was up 5.26 points to
413.22. The ASE was flirting higher
as well, up 1.15 to 2807.8. The
ME, on the other hand, was down
39.84 points to 3,601.23.

The European central banks hold
roughly half of the world’s gold
reserves. Some analysts, quoted
on Bloomberg and the CBS
Stockwatch, caution that at
least some of today’s 4% gain in
the price of an ounce of gold –
the biggest price jump in more
than a decade – could be lost if
the other half of the world’s
holders decide to sell on the
higher price.

There had been pressure on the
European banks to cap gold sales
and protect the countries’ bullion
assets, but the weekend
announcement still came as a
surprise.

Other stocks fared well today
because the Japanese central bank
said it may unload some yen to
curb its rise against the US$. The
Dow Jones average closed up 24.06
points to 10303.39. The S&P
inched up 5.95, to close at
1283.31, and the Nasdaq edged
up 21.34 to 2761.75.