Shares of most gold mining companies came under pressure Friday amid a broad-based sell-off on Wall Street.
Financial markets headed south as lingering sovereign debt concerns in Europe overshadowed the better than expected U.S. non-farm payrolls data.
The Associated Press reported that “Greek Prime Minister George Papandreou’s government faces a vote of confidence later Friday that could determine whether he stays in office. Papandreou stunned financial markets and European leaders on Monday with a call for a popular vote on an unpopular package of austerity measures. The vote was scrapped Thursday, but markets are still unnerved by the political turmoil in Greece, which threatens to hobble Europe’s efforts to control its debt crisis.”
The AMEX Gold Bugs Index (HUI), comprised of the world’s largest gold producers, slid 1.8% to 583.95 in late morning trading. Notable decliners included Agnico-Eagle Mines (AEM), IAMGOLD (IAG), and Kinross Gold (KGC) – with losses of 2.4%, 2.5%, and 1.6%, respectively.
The HUI’s weakness coincided with a modest drop in COMEX gold futures, which fell $10.10, or 0.6%, to $1,755.00 per ounce. Widespread selling in U.S. equities also pressured the sector, as the Dow Jones Industrial Average (DJIA) tumbled 155.56 points, or 1.3%, to 11,888.91.
Alacer Gold Increases South Kalgoorlie Reserves by 96%
The Company noted that SKO is located in a prolific and extremely well endowed, but under explored, gold district that it believes will yield further significant gold discoveries. Read the Full Press Release.
