Gold Miners Hit as Gold Trades as Risk Asset, Goldcorp Lowers Guidance (GG) (GDX) (GLD) (SLV)
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Goldcorp Inc. (NYSE: GG) is trading lower by 4.5 percent in after-hours trading on Tuesday. The downdraft follows reduced production guidance at the company due to operational issues.
The move lower is on top of 2.3 percent intraday decline at Goldcorp caused by a sharp drop in the spot price of gold. SPDR Gold Shares (NYSE: GLD) finished the day lower by 1.23 percent as the spot price of gold declined below $1570 per ounce. Market Vectors Gold Miners ETF (NYSE: GDX) was lower by 3.12 percent intraday and lost an additional 0.80 percent following the announcement by Goldcorp.
The continued downward pressure on GLD and GDX is a disturbing development for gold, particularly in light of a slide in equities today. GDX and GDL were once viewed as 'safe-haven' investments, but that trade has reversed in the recent months, and gold is now trading as a 'risk-asset'.
Gold is also suffering from increased demand for the U.S. dollar, which is trading at highs. Spot silver and SLV has many of the same problems as GLD. iShares Silver Trust (NYSE: SLV) closed lower by 1.81 percent on Tuesday.
The move lower is on top of 2.3 percent intraday decline at Goldcorp caused by a sharp drop in the spot price of gold. SPDR Gold Shares (NYSE: GLD) finished the day lower by 1.23 percent as the spot price of gold declined below $1570 per ounce. Market Vectors Gold Miners ETF (NYSE: GDX) was lower by 3.12 percent intraday and lost an additional 0.80 percent following the announcement by Goldcorp.
The continued downward pressure on GLD and GDX is a disturbing development for gold, particularly in light of a slide in equities today. GDX and GDL were once viewed as 'safe-haven' investments, but that trade has reversed in the recent months, and gold is now trading as a 'risk-asset'.
Gold is also suffering from increased demand for the U.S. dollar, which is trading at highs. Spot silver and SLV has many of the same problems as GLD. iShares Silver Trust (NYSE: SLV) closed lower by 1.81 percent on Tuesday.
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