Gold Stocks Down as Gold Price Dips

Gold stocks dominated Tuesday's most active decliners on the Toronto Exchange, as the price of gold fell to a six-month low of $782 per ounce.

The drop in gold can be credited to a rise in the U.S. dollar due to the government bailout of Fannie Mae (FNM) and Freddie Mac (FRE).  

In Tuesday morning trading, Kinross Gold Corp. (KGC) was down 9%, Barrick Gold Corp. (ABX) was down 4%, Yamana Gold Inc. (AUY) was down 7% and Goldcorp Inc. (GG) was down 5%.

Comments

[sandspider:]

"The drop in gold can be credited to a rise in the U.S. dollar due to the government bailout of Fannie Mae (FNM) and Freddie Mac (FRE)."
Whoaaa. Can you say that again with a straight face? Not from my perspective over here in the Middle East. Damn the news in the states is getting weird and more weird. I smell smoke.....

2008 Sep 10 10:55 AM

[woodsey:]

Cause people aint buyin it like here in takes us.

2008 Sep 10 04:04 PM

[Socialism c...:]

Yeah, I agree with sandspider...don't know why govt bailouts would strengthen the dollar. They're gonna print their way outta this...that equals weak dollar, which means strong gold.

2008 Sep 15 12:50 AM