Gold Miners Sink as Gold Ran Below $1,300

GLD_Warehouse

Gold miners together with Barrick Gold Corp. (ABX), the largest gold mine, dropped to a four-year low after the U.S. Federal Reserve announced it could cut down stimulus and the yellow metal declined under $1,300 an ounce for the first time since 2010.

The 53-company S&P’s/TSX Global Gold Sector Index plunged 4.9% to reach 171.34 points at 10:03 a.m. in Toronto, after earlier touching 170.38, the lowest intraday since October 2008. The index has dropped 43% this year. Toronto-based Barrick decreased 5.2% to reach C$17.59, while Goldcorp Inc. (G), the second-largest Canadian producer by sales, also decreased 4.7% to reach C$25.66.

On the Comex in New York, gold futures dropped 6% to reach $1,292.10 at 10:05 a.m., the lowest intraday price since Sept. 28, 2010, a day after Ben S. Bernanke; Federal Reserve Chairman stated that stimulus may be tapered later this year as the economy improves. The metal’s decrease was the largest since April 15, when gold ended the day low by 9.3%, the most in three decades.

Holdings in the world’s largest exchange-traded product backed by bullion, The SPDR Gold Trust, yesterday dropped under 1,000 metric tons for the first time in four years.