Gold Correction Drives Yamana Gold (NYSE:AUY), Eldorado Gold (NYSE:EGO), Novagold (AMEX:NG) Down

In what can now safely be identified as a gold correction, the price of gold and gold mining shares has been plunging, and is affecting major gold miners and others like Yamana Gold, Inc. (NYSE:AUY), Eldorado Gold Corp Ltd (NYSE:EGO) Novagold Resources Inc (AMEX:NG).

Today the news driving the gold miners' prices down is primarily the decision by South Korea to raise its interest rates by 25 basis points to 2.50. Also weighing on the market is what other countries in the region may follow suit, especially China.

The other factor is the weakness of the euro from the ongoing sovereign debt debacle in the European Union, which is now highlighted by the probability Ireland will eventually have to be bailed out, and the news from Greece that somehow they understated their deficit. That hints and dishonesty and uncertainty more than anything, which underscores the inability for investors and analysts to know the real condition of the EU, which is in reality fighting to maintain its existence.

This has artificially propped up the U.S. dollar, which has added to the drop in gold prices today.

NovaGold was trading at $13.65, falling $0.53, or 3.74 percent at 2:55 PM EST. Eldorado was at $16.56, losing $0.50, or 2.93 percent. Yamana was down to $11.22, decreasing by $0.24, or 2.09 percent.