Gold Futures Dropped Behind Positive Jobs Data (GLD, GDX, GOLD, NEM, FCX)

The extended winning streak of Gold futures was recently halted as the prices of futures went down $50. This marks the largest one day decline for Gold Futures in the last 20 months which included a string of record highs in the recent weeks.

The decline of Gold was brought about by the stronger than expected economic data that boosted the dollar against the currency’s major rivals, showing that the US economy is improving faster than initially thought. However, this is a major concern among market participants because this could mean a prolonged decline for Gold if the surge of the dollar continues. Experts speculate that the price of Gold may have peaked as the economy stabilizes.

The price of December Gold Futures in the Comex Division of the NY Mercantile Exchange fell 3.99% to $1,169.50 an ounce. Moving the opposite direction, the ICE Futures US Dollar Index went up 1.5% to 75.805 points after Gold Prices settled.

With the less than favorable outlook in Gold, Market Vectors Gold Miners ETF (NYSE: GDX) dropped 5.31% to fall to $50.68 a share. SPDR Gold trust (NYSE: GLD) also suffered a steep decline as it dropped 4.16% to finish at $113.75 a share.

The shares of companies heavily invested in Gold also fell. Rangold Resources Limited (NASDAQ: GOLD) saw their shares drop 4.26% behind the drop of Gold prices. Rangold is in the business of mining and exploring for Gold. Newmont Mining Corporation (NYSE: NEM) fell at a rate of 4.46%, dropping to $52.05% per share. Newmont Mining Corporation is a Gold producer with operations in the United States. Freeport Mcmoran Copper and Gold (NYSE: FCX) fell 4.69% to $79.87 per share. Freeport McMoran has mining operations of Gold in the Democratic Republic of Congo and Indonesia.