Gold mining stocks and ETFs declined almost universally on Tuesday. Some companies have seen major drops based on recently-reported earnings, but overall, the gold sector is down as a whole amid new European Union optimism.
The results of the recent first-round French presidential election provided renewed EU optimism as centrist and pro-EU candidate Emmanuel Macron edged ahead of far-right, leave-EU candidate Marine Le Pen. A run-off election is set for early May that could help to determine the strength of the EU moving forward.
The newfound hope that France will not elect a leader who hopes to remove the country from the EU has helped stabilize markets. This leaves gold in a bad spot, as it is regularly used as a fallback investment during uncertain times.
Gold was down 0.92% to $1265.70 through afternoon trading on Tuesday, a day after falling
0.9%-its biggest one-day loss since March 10. Aside from investors moving money out of gold, one major gold mining company took a big hit after reporting its first quarter earnings.
Barrick Gold Corporation ABX stock was down 11.16% to $16.92 per share in late afternoon trading on Tuesday. Barrick missed earnings expectations, but more importantly, the Argentina-based company lowered its full-year production guidance.
Canadian gold mining companies McEwen Mining Inc. MUX and Klondex Mines Ltd. KLDX fell roughly 4% and 2.5% respectively. Compania de Minas Buenaventura S.A.A. BVN was down 1.88%, while DRDGOLD Limited DRD dropped over 6%.
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