Fear Trade Shines as Oil, Equities Break Down (IAG) (SLW) (GDX) (GDXJ)

Gold and gold mining stocks advanced Monday as weakness in oil and fears about elections in Greece and EU deflation dragged equities lower.

Caterpillar (NYSE: CAT) and its peers were noticeably weak on concerns related to oil's impact on indirect revenue. JP Morgan slapped the stock with a downgrade given these concerns.

More broadly, it was another day of crushing losses in oil-related stocks as WTI slipped below $50 per barrel. Meanwhile, gold futures advanced 1.45% despite USD strength. Bonds also advanced, with yields on U.S. 10-year treasures close to testing 2%. Strength in gold and bonds was confirmed by strength in VIX, suggesting heightened levels of fear in the market.

Gainers included IAMGOLD Corp. (NYSE: IAG), Newmont Mining (NYSE: NEM), Yamana (NYSE: AUY), and Silver Wheaon (NYSE: SLW). Market Vectors Gold Miners (NYSE: GDX) gained 2.3%, while Market Vector Junior Gold Miners ETF (NYSE: GDXJ) jumped 4%.

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