BUZZ-Gold miners ETF sinks to lowest price ever

Tue Jan 19, 2016 2:58pm EST
 
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** Market Vectors Gold Miners ETF fell 4.9 pct intraday - if price holds it will be the fund's all-time low closing price

** The fund - which includes shares of Newmont Mining Corp , Barrick Gold Corp and Goldcorp Inc - sank even as gold prices largely held up after data showing weak economic growth in China prompted speculation Beijing will boost stimulus

** U.S. gold for February delivery edged a bit lower during a volatile trading session, while the spot price was at 1089.76 after trading as low as 1082.61 in the late morning New York time.

** Over 1 yr, GDX's price has fallen 43.3 pct

** Even before the selloff today, investors have taken a 44 percent drop in gold prices and 70 percent slump in stock values since 2011

** Gold slid 10 pct last yr on fears that higher U.S. interest rates would lower demand for the non-interest-paying asset and continued U.S. dollar strength caps gold's upside

** Weak physical demand from top gold consumers China and India has also limited gold's upside potential, analysts said, with Chinese consumer spending dented by its slowing economy