Gold and Gold Miners Trading at Multi Year Lows Following BOJ Decision

Gold Futures are down sharply following the BOJ surprise 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

now trading at levels last seen during the Financial Crisis of October 2008. Some of the major names, like Barrick Gold

and Newmont Mining

, are poised to trade at 20 year lows. Many industry analysts are looking at 1100 as the price where mining becomes unprofitable for many of these companies, as margins get squeezed. Option implied volatility is approaching multi-year highs on these names as well, also highlighting the veracity of the sell-off. Shares of NEM, GDX, and ABX are all lower by over 2 percent in pre-market trading.