Tuesday, April 12, 2011

Newmont Mining (NEM) (IAG) (IAG) Down as Gold Prices Drop

Gold prices took a breather Monday after soaring for several days, closing with gold miners like Newmont Mining (NYSE:NEM), IAMGOLD Corporation (NYSE:IAG) and Allied Nevada Gold (AMEX:ANV) dropping in price.

On Monday gold prices closed down, declining $6 to $1,468 an ounce on the Comex division of the New York Mercantile Exchange. The contract had set a new all-time high 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.

Most of the recent rise in gold prices is based upon the unrest in the Middle East, collapsing U.S. dollar, pullback in China, sovereign debt crisis in Europe and 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 fought back to gain recent lost ground from the euro, with the European currency trading at $1.4426, down from $1.4480 on Friday.

Newmont Mining closed Monday at $56.95, falling $1.04, or 1.79 percent. IAMGOLD closed at $22.57, down $0.53, or 2.29 percent. Allied Nevada Gold closed at $38.59, dropping $1.98, or 4.88 percent.

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