The recent weakness in gold shares escalated on Wednesday as gold futures plunged to fresh 2-month lows. The sell-off was driven by broad-based liquidation in precious metals and further strength in the U.S. dollar.
The Market Vectors Gold Miners ETF (GDX) dropped $2.39, or 4.6%, to $49.72 per share in afternoon trading, while COMEX gold futures sunk $51.30, or 3.0%, to $1,642.90 per ounce.
With its decline, the GDX reached its lowest level since December 29, 2011 and came within 1.0% of its 52-week low. On a year-to-date basis, the GDX turned lower by 3.3% and continues to significantly underperform the yellow metal – which has risen 4.9% in 2012.
Notable gold miners moving lower on Wednesday included Eldorado Gold (EGO), Kinross Gold (KGC), and New Gold (NGD). EGO fell by 6.2% to $13.28, KGC by 6.5% to $9.85, and NGD by 4.4% to $9.53 per share.
Source; http://www.goldalert.com/2012/03/sell-off-in-gold-intensifies-gdx-drops-4-6/
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