Gold, Silver Shares Retreat, Precious Metals Turn Lower
By jturbin | October 10, 2012 6:52 AM EST
Shares of most gold and silver mining companies turned sharply lower on Tuesday amid a broad-based sell-off in financial markets and strength in the U.S. dollar.
The Philadelphia Gold & Silver Index (XAU) initially rose as much as 0.7% to 191.35, but traded down by 1.9% at 186.56 this afternoon. Notable XAU components in the red included Agnico-Eagle Mines (AEM), Kinross Gold (KGC), and Silver Standard Resources (SSRI). AEM fell by 1.8% to $52.20, KGC by 2.9% to $10.41, and SSRI by 3.9% to $14.73 per share.
The sector retreated in concert with precious metals, as gold futures slid $9.70, or 0.6%, to 41,766.00 per ounce. Silver futures fared modestly better, dropping only $0.11, or 0.3%, to $33.91 per ounce.
As for the broader equity markets, the Dow Jones Industrial Average slipped 93.39 points, or 0.7%, to 13,490.30 and the S&P 500 Index declined 13.09 points, or 0.9%, to 1,442.79.
The U.S. Dollar Index was one of the few beneficiaries of today’s risk-off environment, as it advanced 0.6% to 80.012.