The 40-company Standard & Poor’s/TSX Global Gold Sector Index fell as much as 6.5% to its lowest intraday level since December 2001. Barrick, the world’s largest producer by sales, dropped as much as 6.9% to C$12.80, the lowest intraday since 1991, and was down 3.2% at 9:49 a.m. in Toronto, where the company is based. Detour Gold Corp., which operates a gold mine in Ontario, declined as much as 17%, while Lake Shore Gold Corp. plunged 15% and Centerra Gold Inc. tumbled 15%.
Gold futures fell as the dollar strengthened after the Bank of Japan unexpectedly boosted stimulus and the Federal Reserve ended asset purchases this week. Miners also declined this week as large producers including Goldcorp Inc. and Yamana Gold Inc. reported surprise net losses.
Gold dropped 2.6% to $1,168 an ounce at 9:52 a.m. on the Comex in New York, the lowest intraday since July 2010.
About a third of gold production is probably money-losing when the price of the metal is less than $1,250 an ounce, Joe Wickwire, who manages the Fidelity Select Gold Portfolio, said in a phone interview last month.
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