GOLD STOCKS NEWS - Gold stocks climbed as Canada’s S&P/TSX Global Gold Index - the most closely followed basket of gold stocks in Canada - increased 1.7% on the strength in gold. With this morning’s rally in the gold stocks, the S&P/TSX Global Gold Index is set to close the week higher by nearly 4% - to its highest level since mid-January. Barrick Gold (ABX), the largest gold producer in the world, advanced 1.8% to $40.53 as the company is in the midst of raising as much as $978 million by spinning off its African gold assets in a London initial public offering. Goldcorp (GG), one of the most widely held gold stocks, rallied 2.4% to $40.53 in tandem with a rising gold price and stronger global stock markets.

Strength in the gold stocks came amid another day of several news items in the gold sector. Lihir Gold (LIHR) announced it has agreed to terms to sell its Ballarat project in Victoria, Australia, to Castlemaine Goldfields for AUS$4.5 million and a 2.5% royalty interest capped at AUS$50 million. The sale is contingent upon Castlemaine receiving shareholder approval to raise AUS$20 million in new equity for the purchase and development expenditures. In morning trading, shares of Lihir Gold rose $0.61, or 2.3%, to $27.00.

Two Canadian-based gold stocks - Yamana Gold (AUY) and Premier Gold Mines (PG.TSX) - received rating changes from RBC Capital Markets. The firm downgraded shares of Yamana - which is the eighth largest component of the Market Vectors Gold Miners ETF (GDX) - from “Outperform” to “Sector Perform” after the company reported earnings that slightly missed market expectations. RBC upgraded shares of Premier Gold Mines, however, to “Outperform” from “Sector Perform” and issued a 12-month price target of C$5.75 - a 46% premium to yesterday’s C$3.95 closing price. Shares of AUY sunk $0.14, or 1.3%, to $10.47 this morning while shares of PG.TSX advanced C$0.08, or 2.0%, to C$4.03.

Meanwhile, Silver Wheaton, a minor component of the GDX, reported earnings for the fourth quarter and full year 2009. The world’s largest silver streaming company reported quarterly earnings of $0.15 per share, versus a net loss of $0.22 per share in the fourth quarter of 2008. Attributable silver equivalent production of 17.4 million ounces (16.2 million ounces of silver and 19,300 ounces of gold) rose 46% for the year. Silver Wheaton also issued a 2010 forecast of 23.5 million silver equivalent ounces produced. Market participants used the earnings report to drive shares of SLW higher this morning, as they surged $0.71, or 4.7%, to $15.78.