Tuesday, April 12, 2011

Ivanhoe Mines Ltd. (IVN) (RGLD) (EGO) Down as Gold Prices Drop

Gold prices took a breather Monday after soaring for several days, ending up with gold miners like Ivanhoe Mines Ltd. (NYSE:IVN), Royal Gold (Nasdaq:RGLD) and Eldorado Gold Corporation (NYSE:EGO) dropping in price.

On Monday gold prices closed lower, falling $6 to $1,468 an ounce on the Comex division of the New York Mercantile Exchange. The contract had set a new all-time in the last session, reaching $1,478 a troy ounce.

June gold settlements were $1,468.10, down $7.90; Range was $1,465.40-$1,472.80.

Much of the recent jump in gold prices is based upon the collapsing U.S. dollar, pullback in China, sovereign debt crisis in Europe, unrest in the Middle East, deepening inflation and consequences of the Japanese earthquake are just some of the negative factors hitting the markets.

A stronger dollar on Monday pressured gold prices lower. The U.S. dollar battled back to gain lost ground from the euro, with the European currency trading at $1.4426, down from $1.4480 on Friday.

Ivanhoe Mines closed Monday at $27.52, falling $0.59, or 2.10 percent. Royal Gold closed at $53.11, down $0.63, or 4.58 percent. Eldorado Gold Corporation closed at $17.59, dropping $0.46, or 2.55 percent.

No comments: