Gold, Silver Shares Drop, XAU Falls 1.2%

  on January 07 2013 3:05 PM
Unlike most other people, the Queen was allowed to touch and verify the gold.
Unlike most other people, the Queen was allowed to touch and verify the gold. Reuters

Shares of most gold and silver mining companies remained in negative territory Monday afternoon despite mixed action in precious metals and only a modest sell-off in the broader equity markets.

The Philadelphia Gold & Silver Index (XAU) traded down by 1.2% at 160.61 while the S&P 500 Index dipped 0.4% to 1,460.14.

As for the metals, COMEX gold futures settled with a loss of $2.60, or 0.2%, at $1,646.30 per ounce.  In contrast to the yellow metal, COMEX silver futures advanced $0.14, or 0.5%, to $30.08 per ounce.

While news in the sector was rather light, one notable gold miner making headlines was Harmony Gold (HMY).  The South African-based gold miner lowered its full-year production guidance to 1.2 million ounces from 1.3 due to the ongoing closure of its Kusasalethu mine due to labor unrest.

Shares of HMY tumbled 5.2% to $8.03, making it the largest decliner among gold and silver stocks in the XAU.  Other XAU components in the red included Gold Fields (GFI) and Silver Standard Resources (SSRI) – which dropped by 1.4% to $12.04 and by 0.5% to $14.69 per share, respectively.

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