Gold stocks turned sharply lower on Tuesday following five straight days of gains, with the Market Vectors Gold Miners ETF (GDX) sliding $0.62, or 1.4%, to $43.10 per share in mid-day trading. Gold stocks and the GDX headed south as gold futures on the COMEX gave back their earlier gains to trade down by $7.80 at $1,616.20 per ounce. The S&P/TSX Global Gold Index, Canada’s leading basket of gold stocks, dropped 1.2% alongside the GDX.
While headlines in the gold stocks sector were few and far between on Tuesday, over the prior two trading days several large-cap gold miners and GDX components were in the news. Barrick Gold (ABX.TSX, NYSE: ABX), the world’s largest gold producer, had its target price cut by two research firms after reporting disappointing second-quarter earnings last week. Dundee Securities lowered its price target to C$42.00 from C$50.00, while Salman Partners cut its target to C$48.00 from C$60.00 per share. Both firms did reiterate their Buy ratings on Barrick, however.