Gold Stocks Hammered, GDX Eyes Worst Week Since Oct 08

Gold stocks plummeted on Friday, as the Market Vectors Gold Miners ETF (GDX) fell $4.27, or 7.2%, to $55.03 per share.  The sell-off in gold stocks and the GDX was fueled by significant liquidation in COMEX gold futures, which plunged $106.70, or 6.1%, to $1,635.00 per ounce.  In Canada, gold stocks came under heavy selling pressure as well, with the S&P/TSX Global Gold Index tumbled 6.5% to 389.84.

With today’s weakness in gold stocks, the GDX extended its weekly loss to $9.08, or 14.2%. In September the gold stocks ETF is now down 12.4%, and by 10.7% year-to-date.  The most telling statistic, however, may be the fact that the GDX is now on pace for its worst week since a 17.9% drop from October 20-24, 2008.

Barrick Gold (ABX), the GDX’s largest component, retreated $2.88, or 5.9%, to $45.88 per share on Friday and is now lower by 14.4% this week.  Newmont Mining (NEM), the largest U.S.-based gold company and the only gold stock included in the S&P 500, slid $3.77, or 5.8%, to $61.47 per share today.  For the week, NEM is now down 6.5% – making it one of the top performers in the sector.

Other notable large-cap gold stocks moving lower on Friday included Agnico-Eagle Mines (AEM), Randgold Resources (GOLD), and Royal Gold (RGLD).  AEM, GOLD, and RGLD dropped 6.5%, 8.3%, and 8.2%, respectively.