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Mining stocks hit as gold, silver, copper drop |
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Mining stocks fell sharply on Monday as the price of gold, copper and other metals dropped dramatically.
The biggest loser among the miners was copper producer Phelps Dodge, whose stock was off more than 8 percent, at $83.40 in afternoon trading on the New York Stock Exchange.
The sell-off came as gold fell below $600 per ounce for the first time in more than two months, silver fell 8.6 percent and the price of copper was down 4.2 percent in New York.
Freeport McMoRan Copper and Gold stock was down 6.35 percent at $54.61, while gold producer Newmont Mining slipped 4.8 percent to $45.88. Canada-based Barrick Gold saw its stock drop 4.8 percent to $29.85 in New York.
The Philadelphia gold and silver index <.XAU> was down 6.4 percent, the Gold Bugs index <.HUI> of unhedged gold companies fell 6.9 percent and the U.S. gold ETF street tracks fund was down 3.68 percent.
Copper futures in New York settled down 4.2 percent as heavy liquidation gripped most commodity markets, leaving copper prices mired in the lower end of their month-long trading range.
"Everything was pretty much following oil and gold down today, including the copper," said one COMEX dealer.
Copper for December delivery <HGZ6> ended down 15.05 cents, or 4.2 percent, at $3.4175 per pound on the New York Mercantile Exchange's COMEX division, after dealing between $3.5775 and $3.3850, its weakest level since Aug. 31.
Meanwhile, gold prices plunged to below $600 an ounce for the first time in more than two months and silver fell 8.6 percent as falling energy prices and a weak technical outlook sent sell signals to investors.
Platinum dropped 3.5 percent at one point to hit its lowest since late June and palladium also fell as investors abandoned precious metals when gold broke below the 200-day moving support at $593.30. back |
