Dow Surges 200 Points, Gold Extends Losses

The risk-on trade accelerated in mid-day trading Tuesday, as U.S. equity markets surged higher and safe havens such as gold and the U.S. dollar declined.

The Dow Jones Industrial Average (DJIA) climbed as much as 219.28 points, or 2.0%, to 11,074.63, fueled by gains in financials and cyclicals.  The CBOE Volatility Index (VIX), a key measure of risk aversion, tumbled 8.8% to 38.72.
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Gold Stocks (GDX) Slide, Remain “Undervalued”

GOLD STOCKS NEWS – Gold stocks fell Tuesday as the Market Vectors Gold Miners ETF (GDX) slid $1.04 to $62.66 per share.  The sell-off in gold stocks and the GDX came as gold futures tumbled to $1,875 after earlier reaching a new record high of $1,917.90 per ounce.  The S&P/TSX Global Gold Index, a leading basket of gold stocks in Canada, fell 1.8% in concert with the GDX.

Today’s weakness in gold stocks follows yesterday’s 3.9% rally in the GDX, which brought the gold stocks ETF into positive territory on a year-to-date basis.  However, with this morning’s decline, Read More »

Extorre Gold Mines Hits at Puntudo

Extorre Gold Mines (XG.TSX, AMEX: XG) announced results for 20 additional holes from the Renaldo Area on the company’s 100% owned Puntudo Project in Santa Cruz Province, Argentina.  The emerging gold company reported that drilling indicates the presence of a mineralized body approximately 750 meters in length, which remains open to the southeast.   The zone is located 1 kilometer southeast of the silver-gold resource reported on the La Negra structure by Coeur d’Alene and Mirasol Resources on the Joaquin property.
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