Sign up USA
Proactive Investors - Run By Investors For Investors

Gold equities pull back sharply on Wall Street

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.



Register here to be notified of future GLD Company articles
View full GLD profile

Gold Timeline

Newswire
October 05 2015
Newswire
September 21 2015
Newswire
March 15 2013

Related Articles

klondex_core.png
April 11 2016
Nevada-focused gold and silver firm Klondex Mines Ltd appears well on its way to becoming the next mid-tier mining company.
hum_-_yanfolila_constr.png
February 29 2016
The DFS for Yanfolila was published by Hummingbird Resources..
shutterstock_281095631.jpg
November 26 2015
The plan has always been to process the ore using a tried and tested technology called a Rotary Kiln Electric Furnace.
Copyright © Proactiveinvestors.com, 2016. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC