Gold Futures Close Down 3.1%, Sharpest Drop Since April; TSX Precious Metals Sector Slides
August gold futures on the Comex division of the New York Mercantile Exchange closed down $50.30, or 3.1%, at $1,565.50 an ounce, the sharpest decline on a percentage basis since early April. Silver dropped 5.5% to close at $26.84 an ounce.
Gold weakened as the US dollar strengthened and made bullion more expensive to buy on a foreign currency basis. A number of weak economic reports from across the globe also rattled gold traders, who are wary of the demand outlook for the metal.
TSX gold stocks largely followed along. Barrick Gold (ABX.TO, ABX) is currently down $1.40, or 3.4%, at $39.65; Kinross Gold (K.TO, KGC) is down 40 cents, or 4.4%, at $8.68.
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