Gold shares posted only small losses on Thursday despite widespread liquidation in U.S. equity markets.
The AMEX Gold Bugs Index (HUI) dipped 0.5% to 575.01 in morning trading, faring far better than the broader market indices.The Dow Jones Industrial Average (DJIA) plummeted as much as 528.61 points, or 4.6%, to 10,881.60 following the latest batch of disappointing economic data that fueled fears of a double-dip recession.
The modest weakness in gold equities came despite another record-setting day for gold futures, which reached a new all-time high of $1,829.70 per ounce amid a surge in risk aversion on Wall Street.
News in the gold sector was particularly light on Thursday, although one company making headlines was Royal Gold (RGLD). Shares of RGLD climbed 0.3% to $68.97 after National Bank Financial initiated coverage after the market close yesterday on the precious metals royalty company with an “Outperform” rating and $78.00 price target.
Other gold equities moving higher included Yamana Gold (AUY) and Newmont Mining (NEM), which rose 0.5% and 0.6%, respectively.
Notable decliners included Gold Fields (GFI), Goldcorp (GG), and Randgold Resources (GOLD) – which fell 1.7%, 0.8%, and 0.7%, respectively.