Declining Gold Prices Cause Cave-in at Miners (GDX)

June 28, 2012 2:15 PM EDT
Gold miners are being wrecked today, with Market Vectors Gold Miner ETF (NYSE: GDX) tumbling by 3.34 percent. The selloff comes as spot gold comes under pressure, trading down to $1550/oz. The move lower shows that traders continue to shun stocks in this sector, once thought to be the perfect safe-haven.

Year-to-date GDX is lower by nearly 18 percent, making gold miners a standout laggard in terms of sectors. Individual names like Goldcorp Inc. (NYSE: GG) are taking it on the chin, trading down nearly 5 percent today as the U.S. dollar gains strength. Decreased physical demand from countries such as India is hurting demand for gold. The decline is being driven lower by a collapsing rupee, which curbs consumer jewelry purchases as prices rise.

Market Vectors Junior Gold Miners ETF (NYSE: GDXJ) is also lower today, shedding 3.5 percent intraday on Thursday.

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