Gold and silver futures posted substantial losses Monday amid broad-based liquidation in commodities and a rally in the U.S. dollar.
COMEX gold futures, per the December contract, settled lower by $35.80, or 2.0%, at $1,778.90 per ounce. In doing so, COMEX gold finished at its lowest closing level since August 25.
Silver for December delivery on the COMEX retreated $1.50, or 3.7%, to $39.33 per ounce.
Gold equities were dragged down by the yellow metal’s sell-off, but outperformed considerably. The AMEX Gold Bugs Index (HUI) slid by just 0.5% to 604.97. One standout was HUI component Newmont Mining (NEM), which advanced 1.5% to $66.67 per share after enhancing its dividend program linked to the price of gold.
The U.S. Dollar Index (DXY) climbed 0.6% to 77.08 this afternoon, after reaching an intra-day high of 77.52. The majority of the DXY’s rally stemmed from weakness in the euro currency, which slid to as low as 1.3588 against the dollar this morning. In afternoon trading, however, the euro pared its losses and bounced back to 1.3688 versus the greenback.
West Kirkland’s Nevada Exploration Yields Positive Results
* The TUG property is contiguous with 900 square kilometers of mineral rights in the Long Canyon Trend that the Company has optioned through a recent transaction with Rubicon Minerals
* Coupled with an option agreement with Newmont Mining, the option agreements give West Kirkland a dominant land position within the Long Canyon Trend and will be the focus of the Company's exploration efforts in Nevada