Gold and gold stocks could see downside (GOLD, HMY, ABX, NEM, GFI, AU, AUY)

Posted in General 
July 6th, 2009

Gold stocks are a sector to watch for downside heading into the open on Monday, with spot prices declining in Asian trading, and crude oil indicating that many commodity-related assets could stumble at the open on a slightly stronger dollar.

As of 8 a.m. Eastern, shares of Randgold Resources Ltd. (Nasdaq: GOLD) are down more than 5 percent near $61 a share, on volume of more than 33,000, helping to lead the group of gold stocks lower.

Other gold stocks to watch include Harmony Gold Mining Co. Ltd. (NYSE: HMY), Barrick Gold Co. (NYSE: ABX), Goldcorp (NYSE: GG), Newmont Mining Corp. (NYSE: NEM), Gold Fields Ltd. (NYSE: GFI), Anglogold Ashanti Ltd. (NYSE: AU) and Yamana Gold Inc (AUY).

Higher input costs for gold miners and unfavorable currency trends are two factors that could weigh on gold stocks in the coming months.

This morning, Deutsche Securities said it expects gold to peak at about $933 an ounce in fiscal 2009 before declining steadily to its long-term estimate of $600. — Mike Tarsala.

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