The gold mining companies’ shares followed downtrend in gold, which fell
to sub-US $ 1300 levels and hovered around US $ 1285-1290 an ounce on
Comex in New York on Thursday. Miners witnessed loss in the range of
5-8%.
Its not only the yellow metal that witnessed heavy downfall on Thursday. Gold miners including majors like Barrick Gold Corp. (ABX) fell to one of the lowest levels in four years.
The gold mining companies’ shares followed downtrend in gold, which fell to sub-US $ 1300 levels and hovered around US $ 1280-1290 an ounce on Comex in New York on Thursday. Miners witnessed loss in the range of 5-8%.
Gold witnessed sustained fall below $1,300 an ounce for the first time since 2010. Spot gold hit US $ 1280, down by over 6.7% against previous close on Comex.
The overall weakness in gold mining companies was a fallout of the US Federal Reserve’s indication to phase out economic stimulus. Broader market, Dow Jones fell over 1.5 % on Thursday to move around 14,878.50 points, while S&P 500 hovered at 1,601.78 lower by -1.67%.
Barrick Gold fell over 7.72% on Thursday, joined with other majors including Goldcorp Inc (GG), which fell by over 8.2% and Kinross Gold Corp (KGC) which fell by over 8.5% amid heavy sell off in the equities. Newmont Mining Corp (NEM) lost over 5.5% on Thursday.
Bloomberg reported, Gold futures fell 6 percent to $1,291.80 at 12:29 p.m. on the Comex in New York, the lowest intraday price since Sept. 28, 2010, after Federal Reserve Chairman Ben S. Bernanke said yesterday stimulus may be reduced. The metal’s decline was the biggest since April 15, when gold ended the day down 9.3 percent, the most in three decades.
Toronto-based Barrick fell 6.3 percent to C$17.39, the lowest since November 1992, while Goldcorp Inc. (G), the second-largest Canadian producer by sales, fell 5.8 percent to C$25.37.
Gold prices were also weak in the other key markets like India, where prices tumbled by nearly Rs 1,000 per 10 grams in future trade on Thursday. Traders attributed the fall to reduced positions by traders largely in tandem with a weak trend overseas. Besides, subdued spot demand also weighed on the prices.
Holdings in the SPDR Gold Trust also fell below 1,000 tons yesterday for the first time in four years. SPDR Gold Trust is the world’s largest exchange-traded product backed by bullion. Gold had touched its historic high of $1,923.70 an ounce in September 2011, when buyers thronged the yellow metal on speculation that economic stimulus by the world’s central banks, including the Fed, would spur inflation.
Source
Its not only the yellow metal that witnessed heavy downfall on Thursday. Gold miners including majors like Barrick Gold Corp. (ABX) fell to one of the lowest levels in four years.
The gold mining companies’ shares followed downtrend in gold, which fell to sub-US $ 1300 levels and hovered around US $ 1280-1290 an ounce on Comex in New York on Thursday. Miners witnessed loss in the range of 5-8%.
Gold witnessed sustained fall below $1,300 an ounce for the first time since 2010. Spot gold hit US $ 1280, down by over 6.7% against previous close on Comex.
The overall weakness in gold mining companies was a fallout of the US Federal Reserve’s indication to phase out economic stimulus. Broader market, Dow Jones fell over 1.5 % on Thursday to move around 14,878.50 points, while S&P 500 hovered at 1,601.78 lower by -1.67%.
Barrick Gold fell over 7.72% on Thursday, joined with other majors including Goldcorp Inc (GG), which fell by over 8.2% and Kinross Gold Corp (KGC) which fell by over 8.5% amid heavy sell off in the equities. Newmont Mining Corp (NEM) lost over 5.5% on Thursday.
Bloomberg reported, Gold futures fell 6 percent to $1,291.80 at 12:29 p.m. on the Comex in New York, the lowest intraday price since Sept. 28, 2010, after Federal Reserve Chairman Ben S. Bernanke said yesterday stimulus may be reduced. The metal’s decline was the biggest since April 15, when gold ended the day down 9.3 percent, the most in three decades.
Toronto-based Barrick fell 6.3 percent to C$17.39, the lowest since November 1992, while Goldcorp Inc. (G), the second-largest Canadian producer by sales, fell 5.8 percent to C$25.37.
Gold prices were also weak in the other key markets like India, where prices tumbled by nearly Rs 1,000 per 10 grams in future trade on Thursday. Traders attributed the fall to reduced positions by traders largely in tandem with a weak trend overseas. Besides, subdued spot demand also weighed on the prices.
Holdings in the SPDR Gold Trust also fell below 1,000 tons yesterday for the first time in four years. SPDR Gold Trust is the world’s largest exchange-traded product backed by bullion. Gold had touched its historic high of $1,923.70 an ounce in September 2011, when buyers thronged the yellow metal on speculation that economic stimulus by the world’s central banks, including the Fed, would spur inflation.
Source