Friday, November 12, 2010

Kinross (NYSE:KGC) Harmony (NYSE:HMY) IAMGOLD (NYSE:IAG) Punished as Gold Prices Fall

Kinross Gold Corp (NYSE:KGC) Harmony Gold Mining (NYSE:HMY) IAMGOLD Corporation (NYSE:IAG), along with most gold miners, are getting punished from the plunge in gold prices today, as spot gold has fallen by over $45 an ounce as of this writing, and don't look to be ready to stop yet.

The news that the consumer price index in China came in at 4.4 percent started the speculation that China may implement higher interest rates, which had gold speculators and traders running for the doors.

The reason they've been selling their long positions in gold is to cover their margins in other investment sectors. This has happened before with gold, even when it was rising, revealing it's not just the interest rate fears but performance of equities which is driving gold prices down today.

Long-term gold investors are loving this, as when things finally bottom out, it's another good buying opportunity to get in at a better level than in the recent past.

For the gold miners, Kinross Gold was trading at $18.32, falling by $0.34, or 1.82 percent at 1:29 PM EST. Harmony Gold was at $12.09, losing $0.33, or 2.58 percent. Iamgold was trading at $17.31, losing $0.43, or 2.42 percent.

No comments: