Shares of the world's largest gold mining companies jumped on higher gold prices Friday as investors shifted into precious metals and demand for the product continued to build.
Barrick Gold Corp., the world's largest gold producer, Newmont Mining Corp., the second largest, and other mining firms posted double-digit gains by late afternoon.
The renewed interest comes as investors seek safer investments amid volatility on Wall Street.
The price of gold for future delivery jumped above $800 an ounce -- up $52.90 to $801.60 by Friday afternoon on the New York Mercantile Exchange.
"There's been a tremendous amount of pressure on gold in recent weeks because as there's been a lot of liquidity selling," Barnard Jacobs Mellet analyst Patrick Chidley said in a telephone interview.
"It's this battle between sellers trying to find liquidity and raise cash and the long-term fundamentals which are for higher gold prices as a result of a weaker dollar," he said.
The lower gold prices also have boosted demand among jewelry manufacturers and investors, Chidley said.
In a separate research note published Friday, JPMorgan analyst Michael F. Gambardella said he is positive on gold fundamentals but believes the sector's direction in the months ahead will be determined by developments in the financial crisis and government action.
On Friday afternoon, shares of Toronto-based Barrick rose $5.71, or 28 percent, to $26.31; and Denver-based Newmont improved $4.62, or 20 percent, to $27.62.
Shares of Goldcorp Inc. climbed $4.04, or 21 percent, to $23.07; and Gold Fields Ltd. was up $1.45, or 27.2 percent, to $6.78.
