Gold And Gold Miners Trading At Multi-Year Lows Following BOJ Decision
Gold futures are down sharply following the Bank Of Japan rate cut, trading at the lowest price since August 2010. December gold is down 2.75 percent at 1165.60, breaking support at the 1180 level.
Gold stocks are feeling the effects as well, with the Gold Miners ETF (NYSE: GDX) trading at levels last seen during the 2008 financial crisis that October. Some of the major names, such as Barrick Gold Corporation (NYSE: ABX) and Newmont Mining Corp (NYSE: NEM), are poised to trade at 20-year lows. Industry analysts are looking at 1100 as the price where mining becomes unprofitable for many of these companies, as margins get squeezed.
Shares in these issues were down by more than 3 percent Friday morning.
Option implied volatility is approaching multi-year highs on these names as well, also highlighting the veracity of the sell-off.
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