Gold Miner Stocks Jump As Prices Soar

PITTSBURGH (AP) — Shares of gold producers jumped Tuesday as prices for the metal rose above $1,000 per ounce for the first time since March 2008.

Also Tuesday, Barrick Gold Corp., the world's biggest gold producer, said it had agreed to sell an interest in silver production from four of its mines to Canada's Silver Wheaton Corp. for $625 million.

The transaction will provide Toronto-based Barrick with a source of financing for Pascua-Lama, a gold and silver mine under construction in South America, and will extend Silver Wheaton's growth cycle.

The higher gold prices suggest investors are wary of the U.S. dollar's weakness and expect international interest rates to remain low for some time.

The gold contract for October delivery traded up $10.10, or 1.0 percent, at $1,005.60 per troy ounce in midday European trading on the London Metals Exchange. That's the highest level since it hit a record of $1,038.60 on March 17 last year.

Gold is typically bought as an alternative to the dollar among safe-haven assets favored by investors seeking to preserve capital. So its rise often correlates to a drop in the value of the American currency.

Shares of gold producers climbed amid the developments.

Coeur d'Alene Mines Corp. shares rose $1.77, or 10.3 percent, to $18.97 in afternoon trading. Hecla Mining Co. stock climbed 35 cents, or 10 percent, to $3.80. Harmony Gold Mining Co. shares grew 58 cents, or 5.4 percent, to $11.26.