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Rising bullion price boosts gold equities

A rising gold price that touched US$1,228.60 an ounce on the spot market earlier today outshone a mixed period on equities markets.
Rising bullion price boosts gold equities Rising bullion price boosts gold equities Rising bullion price boosts gold equities Rising bullion price boosts gold equities Rising bullion price boosts gold equities

Saracen rose on record gold production

Staff reporter

Geopolitical tensions have increased between the US and Saudi Arabia over a journalist's disappearance, sending oil prices higher, and Brexit talks stalled yesterday.

Toronto's gold sector was up almost 0.9% on the S&P/TSX Composite Index yesterday and diversified miners gained just over 1%.

Among the juniors, gold explorer and new market darling Great Bear Resources (TSXV: GBR) rose more than 20% to a fresh 52-week high of C$3.21, representing a gain of almost 713% year-to-date after announcing results of a summer mapping programme at its Dixie gold project in Ontario.

Rusoro Mining (TSXV: RML) shareholders were also smiling with the stock rising a further 56.82% yesterday to a fresh one-year high and a gain of about 393% year-to-date, as the market continued to digest news of a long-awaited settlement with Venezuela that could see the pair team up to restart expropriated gold assets.

In London, Rio Tinto (LSE: RIO) had gained 1.69% yesterday ahead of today announcing lower iron ore production for the September quarter due to maintenance and a fatality at Paraburdoo.

Gold miner Randgold Resources (LSE: RRS) rose more than 5% as its proposed merger with Barrick Gold looms.

Metals and mining stocks were in positive territory on the ASX in late afternoon trade with the gold sector on the S&P/ASX200 index up around 2.5%.

Western Australian-based Saracen Mineral Holdings was leading the way with a gain of 4.9% at the time of writing after it announced record quarterly gold production.