Gold price correction sinks mining stocks – by Frik Els ( – March 2, 2017)

In heavy volumes gold suffered its worst trading day of 2017 on Thursday with the metal coming under pressure from a rise in the US dollar to 2-month highs and a looming interest rate hike in the US.

Gold for delivery in April, the most active contract on the Comex market in New York with over 24m ounces traded by early afternoon, slumped to a low of $1,231.90, down 1.5% from yesterday’s close.

Gold’s negative momentum saw gold stocks selling off heavily on the day with the Market Vectors Gold Miners ETF (NYSEARCA:GDX), holding stock in the world’s top gold miners, dipping 4%, while the Philadelphia Gold & Silver Index (INDEXNASDAQ:XAU) fell at a similar pace, nearly wiping out is year-to-date gains.

While the yellow metal is still up some 7% in value this year, the shares of some major gold miners are back in negative territory for 2014.

By the close on Thursday, Barrick Gold Corp (NYSE:ABX, TSE:ABX) had lost 4.6% with a whopping 32 million shares changing hands, making the world’s number one producer of the metal the sixth most active stock on the NYSE.

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