Shares of gold mining companies sink as metal's price drops

Gold for June delivery tumbled $17 to $908.20 an ounce on the New York Mercantile Exchange, after earlier dropping as low as $899.20. Gold has gained almost 9 percent this year but is more than $100 below its all-time record of $1,038.60, reached March 17.

Analysts blame the decline on falling demand for jewelry and a sense among investors that the worst of the credit crisis may be over, which would lessen gold's appeal as a safe-haven asset.

In afternoon trading, the Dow Jones Wilshire U.S. Gold Mining index was down 1.34 percent.

Not all gold mining companies fell as much as the index but many large miners fell more.

Goldcorp Inc. fell $1.65, or 4.1 percent, to $38.66. Iamgold Corp. fell 39 cents, or 6 percent, to $6.12. Agnico-Eagle Mines Ltd. fell $3.46, or 5.1 percent, to $65.11. Kinross Gold Corp. fell $1.18, or 5.3 percent, to $21.21.

Randgold Resources Ltd. fell $1.33, or 2.5 percent, to $51.85. Barrick Gold Corp. fell $1.38, or 3.2 percent, to $41.33.