NEW YORK (Thomson Financial) - The SPDR S&P Metals and Mining ETF (XME)
surged to a new record Thursday, lifted by a broad-based rally in the
commodities sector, which saw crude-oil closing above $102 a barrel and gold
breaching the $970 level.
The ETF rose as much as 2.5% to $78.05 in intraday trading, the loftiest
price since the fund's inception in June 2006. The fund last traded 1.9% up at
$77.59.
Crude for April delivery closed up $2.95, or 3%, at $102.59 a barrel on the
New York Mercantile Exchange. Oil prices hit a new record of $102.97 a barrel
Thursday.
Gold futures closed up $6.50 an ounce, or 0.7%, at $967.50 an ounce and hit
a new high of $975 an ounce in electronic trading.
Other metals, including silver, platinum, palladium and copper, all posted
solid gains.
Traders attributed the sharp move in commodities to broad weakness in the
U.S. dollar, which sank to a new record low against a basket of other currencies
Thursday. Recent economic data showing accelerating price pressures in the U.S.
economy also drew investors into commodities to hedge against inflation.
Among the ETF's heavily-weighted components, shares of Stillwater Mining Co.
rose 3.7% to $19.89, Cleveland Cliffs Inc. gained 2.1% to $126.62, and Alpha
Natural Resources Inc. added 3.5% to $42.76.
Arch Coal Inc. rose 2.1% to $54.04 and Hecla Mining Co. rallied 6% to
$11.70. Consol Energy rose 1% to $79.87.
Wanfeng Zhou
wz/vj
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