Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Ron Wilkinson who wrote (4224)	12/13/1997 3:17:00 PM
From: JD	Read Replies (1) \| Respond to of 116759

Reversal in market view of Gold/Silver. From the Calgary Herald. Saturday 12/13/97 ********************************************************************** Rise in rates prompts stocks to fall; golds, banks reap rewards JAMES MCCARTEN TORONTO (CP) - Bank stocks rode rising interest rates and gold producers enjoyed renewed investor confidence Friday as the battered Toronto Stock Exchange recovered to post only a moderate decline. The TSE 300 composite index lost a modest 3.04 points to close at 6,641.89 after paring earlier losses of as much as 56 points. The index lost 82.48 points, or 1.2 per cent, for the week. In New York, the Dow Jones industrial average was down 10.69 points to 7,838.30. A declining Canadian dollar prompted the Bank of Canada to raise its benchmark rate 50 basis points to 4.5 per cent Friday. A basis point is 1/100th of a percentage point. The dollar jumped more than half a cent to 70.77 cents US early in the day but fell back to close at 70.42, up about a third of a cent. "I think that's what prevented us from having a real down day," said Pat Blandford, a senior vice-president at Midland Walwyn Capital Corp. "The golds didn't hurt us very much and the interest rate was seen as a good move for the dollar, and that helps the importers," he said. "And the bank stocks did well. That always helps us." Canadian Imperial Bank of Commerce led the way among banks with a gain of $1.05 to close at $46.50, followed by Toronto-Dominion Bank, gaining $0.60 to end the day at $54.10. Bank of Montreal was up $0.55 to close at $65.80, while Scotiabank earned $0.30 to close at $67.80. The Royal Bank was down $1 to finish at $77.10. The price of gold was down $1.20 to close at $282.80 on the New York Mercantile exchange. But it wasn't enough to discourage investors from snapping up gold producers at a bargain. Gold has taken a beating as countries in Europe debate the merits of using the yellow metal as a backing for paper currency. Argentina sold off its reserves last week and Switzerland has said it also plans to sell. But Blandford said investors chose instead to listen to Peter Munk, the chairman of Barrick Gold Corp., who expressed confidence Thursday that the price of gold would recover. "Peter Munk was jawboning the merits of gold, saying '... -if Argentina's sold 130 tons and we're only here, we're pretty close to the bottom,'-" said Blandford. "That's what he's saying, and I think a lot of people are believing him." The gold and silver index was the strongest of the six groups that rose Friday on the TSE, gaining 2.84 per cent. Barrick was up $0.85 to close at $23.65 on volume of 1.1 million shares, while Franco-Nevada Mining Corp. was up $1.35 to close at $25.85. Also gaining were the communications group, up 1.45 per cent, and the merchandising group, which rose 0.54 per cent. High-tech stocks continued to post losses amid fears that instability in Asian markets is going to put a dent in profits. Northern Telecom Ltd. dropped $3.35 to $128.65, while Newbridge Networks Corp. slipped $1.95 to $49.75. Among oils, Petro-Canada fell $0.55 to $25.45 while Canadian Natural Resources Ltd. slipped $0.95 to end the day at $31.05. The biggest decliner was metals and mining, which dropped 2.70 per cent, followed by paper and forestry, which fell 1.51 per cent. Real estate and construction was down 0.76 per cent. Decliners outnumbered advancers 603 to 441 with 292 unchanged in trading of 116 million shares worth 1.6 billion. The TSE 100 lost 0.38 points to close at 403.82. Statistics were not available on the weekly gains by subgroups. On other Canadian markets, the Montreal Stock Exchange portfolio index fell 4.69 points to 3364.53, losing 48.02 points for the week. In Vancouver, the VSE index closed down 5.85 at 593.78 for a weekly loss of 23.80 points.