Gold Stocks Retreat, GDX’s Win Streak at Risk

 

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.

Spanish Mountain Gold Expands Presence in Canada

Spanish Mountain Gold (SPA.TSXV) announced that it has entered into a Mineral Claims Purchase Agreement to acquire certain mineral claims from Acrex Ventures Ltd.  The Property consists of an area of approximately 1,500 hectares and is located adjacent to the Company’s Spanish Mountain Gold Project in central British Columbia, Canada.