ASX gold stocks lead declines as price lowers
Make us a preferred source
Make us a preferred source on Google
The news: Gold stocks dipped in morning trade on the ASX following a pullback in prices on Friday.
The numbers: Gold miners made up seven of the 10 worst performing stocks across the ASX 200 by 11:10am AEST, with Red 5 (-7.4%), Perseus Mining (-6.4%), Genesis Minerals (-6.2%), Bellevue Gold (-4.7%), Emerald Resources (-3.8%), West African Resources (-3.3%) and De Grey Mining (-3.3%) leading the sell off. The materials sector was down 0.67%.
Spot gold was flat at USD2,503.63 ($3,694.50), after a rise in the US personal consumption expenditures price index in the US drove a decline last week.
The context: Gold lowered 1% on Friday as the US dollar and Treasury yields firmed after US inflation data met forecasts, Reuters reported. However, bullion remains elevated on expectations that the US Federal Reserve will cut interest rates this month.
Meanwhile, discounts in India widened last week to their highest in six weeks as a price rebound dampened purchases, while new import quotas failed to lift Chinese demand.
The source: Reuters
