FGLD - Mining stocks tumble as gold prices on track for worst week since October

2023-05-18 11:30:35 ET

Newmont ( NYSE: NEM ) is the worst performing stock on the S&P 500 in Thursday's trading, -3.6% , as gold futures fall to a six-week low on signs the U.S. is progressing toward a debt ceiling deal and with initial jobless claims declining more than expected.

Front-month Comex gold ( XAUUSD:CUR ) for June delivery currently -1.5% to $1,955.20/oz, its third straight decline and on track for its biggest weekly percentage drop since October, and July Comex silver ( XAGUSD:CUR ) -1.6% at $23.50/oz.

The top gold mining ETF ( NYSEARCA: GDX ) -3.7% to its lowest level since late March; among the day's biggest decliners are Equinox Gold ( EQX ) -6.5% , Coeur Mining ( CDE ) -5% , Fortuna Silver Mines ( FSM ) -4.9% , Barrick Gold ( GOLD ) -4.8% , Osisko Gold Royalties ( OR ) -4.7% , Iamgold ( IAG ) -4.7% , Alamos Gold ( AGI ) -3.9% , New Gold ( NGD ) -3.8% , Kinross Gold ( KGC ) -3.7% , Endeavour Silver ( EXK ) -3.6% , First Majestic Silver ( AG ) -3.6% , Agnico Eagle Mines ( AEM ) -3.5% .

ETFs: ( NYSEARCA: GLD ), ( GDX ), ( GDXJ ), ( IAU ), ( NUGT ), ( PHYS ), ( GLDM ), ( AAAU ), ( SGOL ), ( BAR ), ( OUNZ ), ( FGLD ), ( SLV ), ( PSLV ), ( SIVR ), ( SIL ), ( SILJ ), ( SLVP )

Both gold and silver have seen their momentum fade as the U.S. dollar continues to rise, extending a recent rebound that carried the ICE U.S. Dollar Index to its highest level in nearly two months and sending the yield on the 10-year Treasury up more than six basis points to 3.639%.

Traders have scaled back expectations of interest rate cuts this year, now seeing a 27.3% chance of the Fed raising rates in the June meeting, compared to near-zero last week, according to the CME FedWatch tool.

Earlier this month, the front-month Comex gold contract closed at $2,048/oz, its second highest settlement on record .

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