Bloomberg News

Newcrest Declines as Gold Tumbles Below $1,300: Sydney Mover

June 20, 2013

Newcrest Mining Ltd. (NCM) plunged to its lowest in nine years in Sydney as Australian gold producers declined after bullion tumbled to the lowest since 2010.

Newcrest, Australia’s biggest producer, fell 6.6 percent to A$10.03, lowest since May 10, 2004 at 11:32 a.m. Local time. OceanaGold Corp. (OGC) dropped 7.6 percent and Alacer Gold Corp. (ASR) slid 9 percent. The benchmark S&P/ASX 200 index fell 0.7 percent.

Gold tumbled below $1,300 an ounce, while the dollar headed for a weekly gain against all of its 16 major peers after Federal Reserve Chairman Ben S. Bernanke this week said stimulus may be reduced. Bullion has slumped 23 percent this year and is heading for the biggest annual drop since 1981, as some investors lose faith in gold as a protection of wealth.

Bernanke’s comments were “producing a U.S. dollar rally, which is by nature a negative for the yellow metal,” said Anson Rosewall, an institutional dealer at BBY Ltd. in Sydney. “In terms of gold stocks, the question is how many of these guys can survive in an environment of unwinding central bank stimulus by the Fed.”

To contact the reporter on this story: David Stringer in Melbourne at dstringer3@bloomberg.net

To contact the editor responsible for this story: Jason Rogers at jrogers73@bloomberg.net


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