Barrick (NYSE:ABX), Goldcorp (NYSE:GG), Newmont (NYSE:NEM) Getting Crushed as Gold Prices Drop

China is the gold story today, as the surprising increase in their consumer price index generated rumors they may raise their interest rates to combat inflation, and panicked speculators and traders fled gold and spot gold prices today plummeted by over $40 an ounce, bringing down gold mining giants Barrick Gold (NYSE:ABX), Goldcorp Inc. (NYSE:GG) and Newmont Mining (NYSE:NEM).

Long-term gold investors aren't too concerned over the plunge in gold prices, as they've been waiting for another entry point because gold prices have taken very little breather lately.

For gold traders and speculators, they're selling their long positions in gold to cover margin calls in other sectors, which in the case of equities have been hammered lately.

Gold shorts will enjoy their day in the sun, something that hasn't happened much in the recent past.

Goldcorp traded at $45.84, dropping $1.41, or 2.98 percent, at 12:51 PM EST. Barrick Gold was at $50.31, losing $1.57, or 3.03 percent. Newmont was at $60.86, falling $2.16, or 3.43 percent.