Gold shares came under heavy selling pressure on Thursday as COMEX gold futures tumbled $56.50, or 3.2%, to $1,717.80 per ounce in early afternoon trading.
The AMEX Gold Bugs Index (HUI) – a composite of the world’s largest gold producers – fell 3.0% to 567.83. In doing so, the HUI is on pace to snap a three-week winning streak and post its worst five-day stretch since October 17-21.
Notable gold stocks moving lower on Thursday included HUI components Barrick Gold (ABX), Gold Fields (GFI), and Harmony Gold (HMY). ABX dropped by 2.1% to $50.39, GFI by 4.0% to $16.66, and HMY by 3.7% to $13.49 per share.
The sell-off in gold shares was fueled by widespread weakness in the equities and commodities markets. The S&P 500 Index sunk 1.4% to 1,219.24 – its lowest level since October 21st. Silver prices turned sharply lower as well – by $1.96, or 5.9%, to $31.75 per ounce – while copper slid 3.0% to $3.38 per pound.
Platinum Group Metals Reports New Discovery in South Africa
The Company noted that drilling is continuing and the drill program is being immediately expanded. The intercepts are located on the 137 square kilometer Waterberg Property and the new zone has a projected, potential strike length distance of 7 kilometers. Full Platinum Group Metals News Release.
- 3.47 grams per tonne (g/t) Platinum, Palladium and Gold (2 PGE+Au) over 3.5 meters at the T1 Reef
- 14.46 g/t 2PGE +Au over 2.0 meters at the T2 Reef (High grade zone)
- 7.00 g/t 2PGE +Au over 5.0 meters at the T2 Reef (Including high grade zone)
