Gold miners tumble as gold prices continue to retreat
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The news: Gold miners sank on the ASX as gold prices extended losses for a fourth straight session.
The numbers: Gold stocks made up four of the 10 worst performing ASX 200 companies by 1:30pm AEDT, with West African Resources (-4%), Ramelius Resources (-3.9%), Northern Star (-3.2%) and Westgold Resources (-2.9%) trading lower.
Materials edged down 0.16% as the wider market added 0.28%.
Spot gold was down 0.42% to USD2,562.15 ($3,954.24), according to Bloomberg data, after nearing a two-month low earlier in the session.
The context: Gold prices extended losses as the US dollar advanced near a seven-month high against major currencies, Reuters reported.
The dollar strengthened on news that October US consumer prices increased, making commodities priced in the currency more expensive for most buyers.
The US Labor Department also reported slowing progress toward low inflation, which could result in fewer interest rate cuts from the Federal Reserve next year.
Gold and interest rates have a historically inverse relationship, where lower rates typically support higher gold prices by reducing the opportunity cost of holding non-yielding assets.
