Proactiveinvestors recommends
Additional Information
Market: NYSE
Sector: Gold Mining
EPIC: GLD
1 year chart
digital-look imported chart image
1 day chart
digital-look imported chart image
Gold
www.gold.org

Gold is a chemical element with the symbol Au and the currency code is XAU. It is a highly sought-after precious metal which, for many centuries, has been used as money, a store of value and in jewelry. The metal occurs as nuggets or grains in rocks, underground "veins" and in alluvial deposits. Modern industrial uses include dentistry and electronics, where gold has traditionally found use because of its good resistance to oxidative corrosion.

Full Gold profile here
Pdf

Gold equities pull back sharply on Wall Street

30th Oct 2009, 4:35 pm
Gold equities pull back sharply on Wall Street

The US Commerce Department reported a 0.5% drop in consumer spending this afternoon, which triggered a period of volatility in financial markets. In response to the report, the US Dollar strengthened as traders and investors moved back into the perceived safety of the dollar and out of higher yielding assets, which in turn applied pressure on gold.

On the Chicago Mercantile Exchange, gold futures have dropped over $8/ounce to change hands at around $1,038.

The US dollar delivered another positive trading performance yesterday, as ‘risk’ money returned to the dollar from higher yielding currencies. The move followed after worse-than-expected US consumer confidence data raised doubts of US demand, which could stall a global recovery that has become increasingly priced into financial markets.

Gold equities in New York and Toronto were hit hard by the weaker gold price. New Gold (AMEX:NGD) and Agnico Eagle (NYSE: AEM) were among the heaviest to fall, losing 6% each on Friday. Mexico focused junior producer Minefinders (AMEX: MFN) and South American focused Exeter Resources (AMEX: XRA, TSX: XRC) fell 5.5% while Canadian based Yamana Gold (NYSE: AUY) was particularly weak also, dropping 5%.

Ontario based Rubicon (AMEX: RBY), dual listed Eldorado Gold (TSX: ELD; AMEX:EGO) and International Gold Producer Randgold Resources (NYSE: GOLD, LSE: RRS) all slipped a further 4%. Nevsun Resources (AMEX: NSU), IAM Gold (NYSE: IAG), Keegan Resources (AMEX: KGN) and the world’s largest gold miner Barrick Gold (NYSE: ABX) all fell 3%.

In Toronto, Timmins Gold (TSX-V: TMM) was the one of the few gold stocks to rise, advancing nearly 3%. Victoria Gold Corp (TSX-V) was the weakest in Canada slipping 6% lower, meanwhile multi listed Centamin Egypt (LSE: CEY, ASX: CNT, TSX: CEE) and Hawthorne Gold Corp (TSX: HGC) traded 4% lower.

In the OTC market, low-cost emerging gold producer Gold Resource Corp (OTCBB: GORO) was also trading lower, losing around five percent.

No investment advice


Proactive Investors North America Inc, trades as "Proactiveinvestors USA & Canada".


You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.


You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.


From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.


You understand that we may be providing advertising and/or marketing services to companies mentioned on the site. A full list of companies that are paying for services from us, or our affiliated companies in the UK and Australia can be viewed here