BULKS

Gold plunges on Bernanke's economic views

GOLD fell off a cliff in overnight trade, taking its biggest one-day hit in over three years afte...

MiningNews.Net

This article is 13 years old. Images might not display.

Spot gold shed $US80 to $1704 an ounce in less than 90 minutes in overnight trade before closing at $1696.85/oz, almost 5% lower.

The plunge came after Bernanke gave no indication that the US central bank was considering additional measures to help spur the economy.

Bernanke described “positive developments” in the labour markets but said it “remains far from normal”, according to Bloomberg.

He said a recent rise in gasoline prices “is likely to push up inflation temporarily” and reduce consumer purchasing power.

Bernanke’s comments caused the US dollar to soar as much as 0.8%, eroding investors appeal for the precious metal.

Earlier in the session, gold had been trading as high as $1790/oz and was set to test the $1800/oz mark.

However, spot gold has rebounded slightly in morning trade, up $16.50 to $1713.45/oz.

Gold stocks on the Australian Securities Exchange followed the precious metal lower.

Newcrest Mining was trading A75c lower at $32.74, Eldorado Gold Corporation was down 10c to $14.33, Alacer Gold Corporation fell 15c to $8.97 while Evolution Mining dipped 6c to $1.95.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

MiningNews.net Research Report 2025

The MNN Research Report 2025 provides insights into critical mining themes in Australia/Oceania, including top projects, C-suite priorities, risk, ESG performance and investor sentiment.

editions

Mining Journal Intelligence: Investor Sentiment Report 2025

Exclusive insights into the plans, priorities and preferences of 130+ mining investors and top factors influencing investment decisions in 2025.

editions

Mining Journal Intelligence World Risk Report 2024 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 117 jurisdictions globally, assessed across six risk categories and an industrywide survey.

editions

Mining Company ESG Index: Benchmarking the Future of Sustainable Mining

The Mining Company ESG Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.