Gold stocks plunge as spot price hits three-week low
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The news: Gold stocks dived in early trade on the ASX after gold prices slid to a three-week low, as the US election result saw investors buy into the US dollar.
The numbers: Spot gold hit a three-week low of USD2,652.19 ($4,038.60) per ounce, before paring some losses this morning, Reuters reported.
All of the 10 worst performing ASX 200 stocks were gold miners after morning trade, with Evolution Gold Road Resources (-8.4%), Westgold Resources (-6.9%), Bellevue Gold (-6.8%), Evolution Mining (-6.5%), West African Resources (-.3%), Perseus Mining (-6.2%), Emerald Resources (-6.2%), Northern Star Resources (-6.1%), Vault Minerals (-6%), and Regis Resources (-5.9%) seeing the worst of the sell-off by midday AEDT.
Materials, down 0.59%, was the second worst performing sector as the wider market dropped 0.41%.
The context: The US dollar index hit a four-month high overnight, as Donald Trump was elected the next US president, making bullion more expensive for overseas buyers. Commodities including oil, gas, grains and other metals also dropped as the dollar rallied.
The source: Reuters
