22 Sep Gold price falls to two-month low as global stock markets falter
The threat of new COVID-19 restrictions in economies around the world pushed the gold price to its lowest point in nearly two months yesterday, as part of a wider sell-off seen across global stock markets.
US gold futures fell by 3.9% to US$1,885.40 per ounce on the Comex market in New York as the US dollar strengthened and safe haven demand for the precious metal failed to materialise. Gold futures recovered to $1,900 by early afternoon.
The falling gold price and stock markets downturn also impacted the world’s top gold mining equities, including number one producer Newmont Corporation (down 2.3%) and Canada’s Barrick Gold (down 2.6%).
Further down the sector, Agnico Eagle shed over 3%, AngloGold Ashanti traded down 4.7%, Kinross Gold fell by 8.2% and ADRs of Australia’s Newcrest declined by 5.1% in New York.
As the gold market lost some of its shine yesterday, the world’s top gold miners sought to reassure investors that they will remain disciplined despite surging gold prices boosting free cash flow this year.
“We don’t need to, and will not be, chasing volume,” Newmont chief executive Tom Palmer told the Gold Forum Americas conference. “In this current gold price environment we are actively assessing an increase to our sustainable dividend.”