Gold and silver shares turned lower alongside precious metals on Tuesday, as the Philadelphia Gold & Silver Index (XAU) retreated 1.3% to 182.81 in mid-day trading.
The XAU is coming off its first weekly advance in three, but with today’s sell-off extended its loss in December to 12.2%. Furthermore, the XAU is now lower by 19.3% on a year-to-date basis and on pace for its first annual decline since 2008.
Notable gold stocks in the red on Tuesday included Angico-Eagle Mines (AEM) and Randgold Resources (GOLD). AEM dropped by $0.35, or 1.0%, to $36.39 per share and GOLD by $2.21, or 2.1%, to $102.18 per share.
Coeur d’Alene Mines (CDE) and Silver Wheaton (SLW), two of the most widely-held silver stocks, slid by $0.63, or 2.5%, to $24.91 per share and by $0.65, or 2.2%, to $28.93 per share.
The sector was pressured by modest declines in the metals themselves, as COMEX gold futures slid 0.7% to $1,595.30 per ounce and silver dipped 0.6% to $28.91 per ounce.
In contrast to most gold and silver companies, the broader U.S. equity markets moved fractionally higher, with the Dow Jones Industrial Average (DJIA) up 13.93 points, or 0.1%, at 12,307.93 and S&P 500 Index up 2.09 points, or 0.2%, at 1,267.42.
While U.S. markets resumed trading following the Christmas holiday, Canadian equity markets remained closed and will reopen on Wednesday.
Fortuna Silver Mines Added to S&P/TSX Composite
- Fortuna recently reported its best quarter yet yet in terms of net income, cash flow and metal production
- The Company’s San Jose mine in Mexico declared commercial operations in September and Fortuna expects to report sustained low cost quarterly silver production growth as it expands San Jose from 1,000 tonnes per day (tpd) to the design capacity of 1,500 tpd
- Fortuna is on pace to generate sustained quarterly production growth to the planned annual rate of 4.9 million ounces of silver and 26,000 ounces of gold by Q4 2013
