Article in todays Australian newspaper -Biggest goldfall in 7 years dents miners
A sharp dive in spot gold prices is denting gold miners in lunchtrade, adding to pressure on the mining sector.
Overnight, spot gold prices fell by the most in seven yearsafter US 10-year yields spiked amid a surge in debt issuance from the USgovernment and American companies along with a higher-than-expected increase inthe US producer price index in July.
“We’re not yet convinced that the sharp fall in gold pricesyesterday signals a U‑turn in the precious metal,” Comm Sec resources analystVivek Dhar says.
“The overarchingthemes of i) falling US 10 year real yields, ii) a weaker US dollar and iii)safe haven demand still remains intact for the most part.
“Gold though is an unprecedented environment and the sharpcorrection yesterday goes to show that gold price volatility is likely to stickaround for a while.”
At midday Northern Star shares were down 6.7pc to $14.30 asNewcrest lost 3.6pc to $33.97 and Saracen lost 6.3pc to $5.31.
Evolution lost 6.5pc to $5.47
