14/10/2008 - 13:42

Gold stocks left behind on rally

14/10/2008 - 13:42

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As the Australian bourse continued its rally today on the federal government's $10.4 billion stimulus package, gold stocks were left behind as the price of the precious metal dropped.

As the Australian bourse continued its rally today on the federal government's $10.4 billion stimulus package, gold stocks were left behind as the price of the precious metal dropped.

The Australian gold index closed down 2.11 per cent or 86 points today to 3996.7 points as the spot price of the metal in Sydney fell $US22.35 from yesterday's close to $US864.35 an ounce at 16:30 AEDT.

Analysts say that due to a risk appetite starting to come back on the market, gold - seen as a safe haven in times of turmoil - was starting to be sold off.

Newcrest Mining was down 84 cents, or 3.06 per cent, to $26.65 and Newmont Mining lost 27 cents, or 5.36 per cent, to $4.77 after dipping to an intraday low of $4.58.

Lihir Gold was 14 cents lower, or 5.79 per cent, at $2.28 and Sino Gold closed down 11 per cent to $4.04.

Meanwhile Western Australian gold miner Avoca Resources bucked the trend and added 6.5c or 3.62 per cent to $1.86.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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