Last Update: 4:34 PM ET May 24, 2002
NEW YORK (CBS.MW) -- Gold stocks ended a strong week with a whimper Friday, giving back gains ahead of the holiday weekend.
The Philadelphia Gold & Silver Index ($XAU: news, chart, profile) declined 1 percent to 85.84. The CBOE Gold Index ($GOX: news, chart, profile) was down 0.5 percent to 68.07 while the Amex Gold Bugs Index (HUI: news, chart, profile) was down 0.2 percent to 140.93.
Gold for June delivery fell by $2.10 to $320.70 but remained just off two-year highs. Comex gold inventories stood at 1.56 million ounces, unchanged as of the close of business on Thursday.
"Gold looks to be on the right track to test the next resistance at $325," according to Friday's update on precious metals prepared by UBS Warburg.
Morgan Stanley, taking a longer-term view, said in a note to clients that all signs point to "a bull market for gold. We believe the gold price and gold equities will continue to move higher and outperform the broader markets."
The brokerage maintained its "attractive" view on the sector but upped price targets for the gold stocks it covers since a continuing surge in gold prices bodes well for the sector.
It raised targets for the following companies: Anglogold (AU: news, chart, profile), to $38 a share from $31; Barrick Gold (ABX: news, chart, profile), to $28 from $23; Gold Fields (GFI: news, chart, profile), to $20 from $15; Newmont Mining (NEM: news, chart, profile), to $36 from $33; Placer Dome Gold (PDG: news, chart, profile), to $18 from $16; Agnico-Eagle Mines (AEM: news, chart, profile), to $25 from $20, and Meridian Gold (MDG: news, chart, profile), to $21 from $19.
Morgan Stanley also specified entry and exit points on these stocks: Anglogold, add to positions when below $27 but sell when above $56; Barrick Gold's entry-exit points are below $17 and above $34; Gold Fields' are $10 and $22; Newmont Mining's levels are $19 and $43; Placer Dome's are $12 and $21; Agnico-Eagle's are $8 and $17; Goldcorp's (GG: news, chart, profile) are $12 and $27; Kinross Gold's (KGC: news, chart, profile) are $1 and $3; Meridian Gold's are at $10 and $23; TVX levels are at (TVX: news, chart, profile) $1 and $2 and Teck's (CA:TEKB: news, chart, profile) are at $10 and $20.
As for trading in gold stocks, Anglogold was down 1 percent to $32.66 as did Agnico-Eagle Mines, to $17.25.
Barrick Gold slipped 1 percent to $22.91 and Goldcorp fell by 0.5 percent to $22.16. Freeport McMoRan Copper & Gold (FCX: news, chart, profile) was down 1 percent to $20.05.
Newmont Mining dipped by 1 percent to $30.66. Placer Dome was down as well, by 1 percent to $14.27.
Meridian Gold gave up 2.7 percent to $18.14. Harmony Gold (HGMCY: news, chart, profile) slid by 0.2 percent to $18.07.
ASA Limited (ASA: news, chart, profile) slid 2.4 percent to $37.39. Gold Fields was down 2.6 percent to $15.66.
Over in the broad market, the Dow Jones Industrial Average ($INDU: news, chart, profile) fell 1 percent to 10,104.26. The Nasdaq Composite Index ($COMPQ: news, chart, profile) was down 2 percent to 1,661.49. The S&P 500 ($SPX: news, chart, profile) dipped 1.2 percent to 1,083.82. Treasurys rose.
Tech stocks fell, hurt by a downgrade of the chip-equipment group and a slide in shares of Sun Microsystems (SUNW: news, chart, profile).
In economic news, U.S. gross domestic product for the first quarter was revised to growth of 5.6 percent from a previous reading of 5.8 percent. Meanwhile, after-tax corporate profits rose 0.9 percent in the quarter after dropping by 10.6 percent in the fourth quarter. See Market Snapshot.
Elsewhere in metals, July silver was down 4 cents to $4.872 an ounce. Comex silver inventories stood at 73.2 million ounces, up 411,312.
Silver, standing at a 15-month high, is now looking to establish a new trading range between $4.70 and $4.90 an ounce, according to UBS Warburg. Beyond that, "silver will eventually follow the footsteps of gold and trade through the $5 resistance," the brokerage said, noting that open interest in silver is at levels not seen since August 2000.
May copper was up 0.3 cent to 73.50 cents a pound. Comex copper stocks stood at 333,337 short tons, up 929. July platinum slid $4.10 to $537.50 an ounce. June palladium dipped 50 cents to $351 an ounce. |
