Gold miners tank on US-China tariff relief
Make us a preferred source
Make us a preferred source on Google
The news: Gold miners were the worst performing ASX 200 stocks on Tuesday afternoon after demand for the safe-haven metal dropped in response to the US and China's moves to temporarily slash tariffs.
The numbers: Gold miners made up the 10 worst performing ASX 200 stocks at 1:30pm AEST, with Capricorn Metals (-12.69%), Ramelius Resources (-10.52%) and Genesis Minerals (-10.46) experiencing the deeepest declines.
Regis Resources (-9.85%), Bellevue Gold (-9.43%) and Spartan (-9.05%) were also trading sharply lower.
However, the materials sector was up 0.93% as the latest tariffs news boosted the iron ore majors.
The context: On Monday evening, representatives for the US and China jointly announced a substantial reduction in tariff rates following talks in Geneva. For 90 days, the US will cut tariffs on Chinese goods to 30% from 145% while China will lower levies on US goods to 10% from 125%
The spot price of gold sank after the announcement but has now stabilised, trading 0.04% lower at USD3,234.94 ($5,061.75) per ounce.
