TORONTO -- Gold stocks plunged Thursday, with players such as Barrick Gold and Newmont Mining hitting their lowest levels since last year, as the price of bullion dropped in the face of a stronger U.S. currency.
The Toronto Stock Exchange's global gold index, which tracks producers on major stock markets, fell 4.1 percent to its lowest level since late December. The index is down 13 percent over the past week.
Spot gold, which popped above $1,000 an ounce on March 17, has retreated since then, and fell another 2 percent Thursday to as low as $884.25 during the session.
With some people speculating the U.S. Federal Reserve may cut its benchmark rate next week by less than previously thought, the appeal of gold as a hedge against the weak greenback has been fading, said Ian Nakamoto, director of research at MacDougall, MacDougall and MacTier in Toronto.
"There's a growing sense that they'll cut rates by 25 basis points and be done," he said.
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"The trade has been out of the U.S. dollar on a short term basis into commodities and commodity-related stocks, and that trade is maybe being questioned right now."
World No. 1 producer Barrick fell 3.3 percent, or C$1.37 to C$39.80 on the TSX during the session, while New York-listed Newmont dropped 2.1 percent, or 91 cents to $42.94. Both stocks were at 2008 lows.
Goldcorp, the No. 2 gold miner by market capitalization, fell 5.7 percent, or C$2.22 to C$36.75, while Kinross Gold was the weakest performer, plunging 7.7 percent, or C$1.64 to C$19.65.
South African producer AngloGold Ashanti's New York-listed shares fell 68 cents, or 1.9 percent, to $35.60.
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