Gold, miners extend sharp losses as risky assets rule, Barrick disappoints

|About: Barrick Gold Corporation (ABX)|By:, SA News Editor

Gold futures and gold miners trade broadly lower, extending yesterday’s big drop amid the rise in risk-on sentiment that followed France’s presidential election results.

“Traders’ expectation that Le Pen will not become the next French President has resulted in a technical correction for gold and silver,” says Chintan Karnani, chief market analyst at Insignia Consultants, and if the technical correction continues until Friday, it would “mark the beginning of a short-term bearish phase."

Results are exacerbated by a relatively rare quarterly earnings miss from Barrick Gold, which had beaten in five of the previous six quarters, hurt by lower production and higher costs than expected; Newmont Mining is down 5% even after a Q1 earnings beat with a 2017 outlook that remained mostly unchanged.

ABX -10.4%, NEM -4.7%, GG -4.7%, KGC -6.4%, AEM -5.4%, EGO -5.3%, FNV -3.2%, NG -8%, GORO -7.8%, IAG -7.7%, AUY -6.8%, GOLD -2.5%, GFI -2.6%, SLW -5.5%, FSM -8.1%.

ETFs: GDX, NUGT, GDXJ, AGQ, GGN, DUST, SIL, JNUG, USLV, ZSL, GOEX, UGL, JDST, DGP, UGLD, GLL, DZZ, SGDM, ASA, DSLV, SLVP, DGL, RING, DBS, DGZ, DGLD, PSAU, SGDJ, TGLDX, USV, UBG, GDJJ, GDXX, GDXS