Gold Miners Are Taking A Big Hit As Global Equities Surge

From Zacks: Gold mining stocks and ETFs declined almost universally on Tuesday. Some companies have seen major drops based on recently-reported earnings, but overall, the gold sector is down as a whole amid new European Union optimism.

The results of the recent first-round French presidential election provided renewed EU optimism as centrist and pro-EU candidate Emmanuel Macron edged ahead of far-right, leave-EU candidate Marine Le Pen. A run-off election is set for early May that could help to determine the strength of the EU moving forward.

The newfound hope that France will not elect a leader who hopes to remove the country from the EU has helped stabilize markets. This leaves gold in a bad spot, as it is regularly used as a fallback investment during uncertain times.

Gold was down 0.92% to $1265.70 through afternoon trading on Tuesday, a day after falling

0.9%—its biggest one-day loss since March 10. Aside from investors moving money out of gold, one major gold mining company took a big hit after reporting its first quarter earnings.

Barrick Gold Corporation (ABXFree Report) stock was down 11.16% to $16.92 per share in late afternoon trading on Tuesday. Barrick missed earnings expectations, but more importantly, the Argentina-based company lowered its full-year production guidance.

Newmont Mining Corporation (NEMFree Report) was down 2.67% to $32.81 per share after the company missed sales estimates. Some of the other best performing gold and gold mining stocks were also down on Tuesday.

Canadian gold mining companies McEwen Mining Inc. (MUXFree Report) and Klondex Mines Ltd. (KLDXFree Report) fell roughly 4% and 2.5% respectively. Compania de Minas Buenaventura S.A.A. (BVNFree Report) was down 1.88%, while DRDGOLD Limited dropped over 6%.

Three of the top gold ETFs were also down on Tuesday. Shares of both SPDR Gold Shares (GLDFree Report) and iShares Gold Trust (IAUFree Report) fell roughly 1%. VanEck Vectors Gold Miners ETF (GDXFree Report) was down 4.44% on Tuesday.

The VanEck Vectors Gold Miners ETF (NYSE:GDX) rose $0.08 (+0.36%) in premarket trading Wednesday. Year-to-date, GDX has gained 6.21%, versus a 6.72% rise in the benchmark S&P 500 index during the same period.

GDX currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #17 of 33 ETFs in the Precious Metals ETFs category.


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