U.S. markets extended their losses Wednesday afternoon as escalating sovereign debt worries in Italy and Greece put significant pressure on equities and cyclical commodities.
The Dow Jones Industrial Average (DJIA) tumbled as much as 408.69 points, or 3.4%, to 11,761.49 as of 2:15pm ET – marking its worst day since a 3.5% plunge on September 22.
Risk aversion turned sharply higher, with the CBOE Volatility Index (VIX) surging 31.0% to 35.99.
The gold sector held up particularly well this morning despite broad-based weakness in stocks and commodities, but succumbed to the selling pressure this afternoon, albeit modestly. COMEX gold futures were lower by $16.40, or 0.9%, at $1,782.80 per ounce, while the AMEX Gold Bugs Index (HUI) fell 2.0% to 592.56.
Weakness in precious metals was also fueled by a rally in the U.S. dollar against a basket of foreign currencies. The euro sunk 2.0% to 1.3552 against the greenback this afternoon.
Klondex Mines Makes “Excellent Headway” at Fire Creek Gold Property
* The underground program is testing the Main Zone mineralization to help further define the Fire Creek mineral resource and to guide underground development.
* In late September Klondex received regulatory approvals to construct new drill roads and drill pads required to complete the 2011 drilling program and that work is now being completed.
