Gold Shares turned sharply lower Monday alongside the yellow metal as widespread liquidation engulfed on Wall Street.
The AMEX Gold Bugs Index (HUI) – comprised of the world’s largest unhedged gold producers – slid 2.2% to 541.81 this afternoon. Notable decliners included Agnico-Eagle Mines (AEM) and Kinross Gold (KGC), which dropped 5.0% and 3.9%, respectively. One large-cap miner who bucked the sector’s trend was Harmony Gold (HMY), which inched higher by 0.2% to $12.92 despite the absence of any company-specific news.
Gold stocks in Canada fared relatively better than their U.S. brethren, as the S&P/TSX Global Gold Index dipped 1.0% to 397.20.
The sector was also pressured by broad-based weakness in the U.S. equity markets, as the Dow Jones Industrial Average (DJIA) pared its losses but remained lower by 221.38 points, or 1.9%, at 11,574.67.
COMEX gold futures settled lower by $46.50, or 2.7%, at $1,678.80 per ounce, its lowest closing level since October 24. On an intra-day basis, the yellow metal reached a low of $1,667.10 at approximately 2:00pm ET.
Silver futures headed south as well, by $1.30, or 4.0%, to $31.12 per ounce.
West Kirkland Reports New Discovery at Kirkland Lake
* Due to the observation of coarse visible gold in the core and the high grade nature of some of the results, the Company is submitting select samples for metallic screen assays
* West Kirkland intends to begin drilling more than 2,000 meters to follow up on these results