Several gold stocks down in Monday trading.
The price of gold tumbled Monday afternoon, down more than $47 to just over $768, prompting a number of posts across various Stockhouse Bullboards.
Several gold stocks also tumbled Monday, including Yamana Gold (TSX: T.YRI, Stock Forum) down 19%, Eldorado Gold Corporation (TSX: T.ELD, Stock Forum) which fell 21% and Goldcorp (TSX: T.G, Stock Forum) which fell 15.4%.
On the Horizons BetaPro S&P TSX Global Gold Bull Plus ETF (TSX: T.HGU, Stock Forum) Bullboard - Monday’s most posted board - in a post entitled “POG Last $ 788.70” ReboundRib commented:
The explanation can be found in a financial concept known as deleveraging. In recessions, cash is short, and businesses and individuals seek to raise cash by any means practical in order to prepare themselves for the tough times ahead. In a world in which U.S. currency is held as the global reserve, cash means U.S. dollars. In short, institutions and individuals are selling any asset that is not nailed down (stocks, corporate bonds, etc.) and buying U.S. dollars. This has resulted in plummeting asset prices and a rising dollar Restest of $750 is a certainty now. I hope ot Holds [sic].
sallytucker0 said: “Quite unusual for Gold and OIL to be down on the same day-- Isn't it? Yes, we are in volatile and strange times !”
dudediligent also noted: “Bears will eat their words in days to come. This day is healthy for the bulls as we needed a retracement after the massive move up from five bucks. If there was any conviction in this you would see HGD up much more today then it is. The reason it isn't is because they know HGU will be back stronger than ever. This is a much needed consolidation for the next leg up and you can already see the rebound is in the works[sic].”
On the Barrick Gold (TSX: T.ABX, Stock Forum) Bullboard, in response to a post asking what price the stock is likely to trade at if gold reaches $1,500 within the next few months, alvarez2 said: “These so called experts can't call it any better than you or I. Every now and again one of them gets lucky and when you make enough predictions over time...............sooner or later you are bound to get at least 1 of them right. December short squeeze alright !! The powers that be will not let this get over $1,000 again IMO. Hope I'm wrong[sic]”
