Wall Street closed down last night with the benchmark Dow Jones Industrial Average off 0.2% to 10,739.31 points and the S&P 500 down 0.48% to 1134.28 points. London markets also lost ground, with the FTSE 100 down 0.46% to 5560.83 points.
Commodities rose again overnight, pushed up by the weaker US dollar, and all eyes are still on gold as the spot price posted another record high overnight, nudging the $US1300 mark at $1296.25 per ounce.
Gold futures on Comex in New York also continued their climb into record territory overnight, Dow Jones Newswires attributing the move to speculation the US Federal Reserve will flood the market with more cash to prop up its faltering economy.
The prospects look strong for gold companies over the coming months, according to BNP Paribas analyst Anne-Laure Tremblay, who was quoted by Dow Jones as saying “there appears to be little in the way of factors that could negatively impact the gold market in the coming months”
That sentiment flowed through to Australian-listed gold companies today, with the S&P ASX All Ordinaries Gold index gaining 0.66% to 7805 points.
The broader mining index beat that, however, as the S&P Metals and Mining index rose 0.82% by close to finish the day at 4509 points.
The day was capped for the sub-sector by the best entry of a float for some time, with New South Wales gold-focused Forge Resources finishing its first day on the bourse at an 85% premium to its 20c initial public offering price, closing the day up 17c at 37c.
Both of the major local indices were flat compared to the mining sector. The S&P-ASX 200 closed up 0.18% to 4633.6 points and the All Ordinaries gained 0.11% to 4680 points.
Most of the major miners rose. Newcrest Mining gained A40c to close the day at $40.94, with BHP Billiton up 32c to $39.22 and Rio Tinto up $1.14 to $76.04.
Kingsgate Consolidated broke back through the $12 mark, gaining 24c to close the day at $12.08.
Lynas Corporation was the best of the larger cap resource companies, up 4.5c to $123.50, with Atlas Iron gaining 7c to $2.20 and Murchison Metals 5.5c to $1.85 on news it has increased the size of its Jack Hills resource by 7.3%.
Mantra Resources saw the worst of the trading amongst the larger caps, down 22c to $4.10 on no particular news, and Mount Gibson Iron dropped 5c to $1.665, despite announcing it has Western Australian state government support to upgrade its Geraldton port facility, allowing mining to start at its Extension Hill project by late next year.
Alliance Resources was the best of the mid-caps, up 4c to 37.5c, followed by Centrex Metals – up 4.5c to 42.5c – and Beadell Resources.
Beadell closed at 38.5c today, up 2.5c, after announcing a $31.25 million deal to sell its Brazilian iron ore royalties to Anglo Pacific.
