Gold & Other Commodities Plunge as Panic Runs Wild
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Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 3 | Down: 6 | New: 24
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Last Friday Citi put out a very bearish note on commodities, saying the 'death bell' rings for the commodity supercycle. The report coincided with a technical breakdown in gold. Taken together with lingering concerns about tighter Fed monetary policy, the news sent gold prices below $1500 per ounce. That's where the story began.
This morning Citi followed up the note with a downgrade of copper name Freeport-McMoRan (NYSE: FCX) to Sell. Noranda Aluminum (NYSE: NOR) was cut to Neutral and Cliffs Natural Resources' (NYSE: CLF) price target was lowered to $21.
Meanwhile analyst Russ Visch of BMO weighed in, saying he thinks the decade long bull run in Gold is over. He isn't alone. Speaking on the CNBC, Dennis Gartment said he has never seen anything like gold's dramatic collapse.
"There are a lot of people throwing up their hands. Throwing positions overboard. Panic is everywhere. I've never seen anything like this," Gartman said.
In the past two days gold is lower by over $200 per ounce, an unprecedented move for the precious metal. Shares of Barrick Gold Corporation (NYSE: ABX), Newmont Mining Corp. (NYSE: NEM), Goldcorp Inc. (NYSE: GG), Silver Wheaton Corp. (NYSE: SLW) and Yamana Gold, Inc. (NYSE: AUY) were hit for the second day in a row on Monday.
Based on Friday's move, Visch thinks downside in gold could target $1250 per ounce. However, he is cautious about a snapback rally, although for the time being gold looks more likely to take the elevator down than the stairs.
SPDR Gold Shares (NYSE: GLD) is lower by 7.5 percent. iShares Gold Trust (NYSE: IAU) is lower by a similar amount. iShares Silver Trust (NYSE: SLV) lost 10 percent.
This morning Citi followed up the note with a downgrade of copper name Freeport-McMoRan (NYSE: FCX) to Sell. Noranda Aluminum (NYSE: NOR) was cut to Neutral and Cliffs Natural Resources' (NYSE: CLF) price target was lowered to $21.
Meanwhile analyst Russ Visch of BMO weighed in, saying he thinks the decade long bull run in Gold is over. He isn't alone. Speaking on the CNBC, Dennis Gartment said he has never seen anything like gold's dramatic collapse.
"There are a lot of people throwing up their hands. Throwing positions overboard. Panic is everywhere. I've never seen anything like this," Gartman said.
In the past two days gold is lower by over $200 per ounce, an unprecedented move for the precious metal. Shares of Barrick Gold Corporation (NYSE: ABX), Newmont Mining Corp. (NYSE: NEM), Goldcorp Inc. (NYSE: GG), Silver Wheaton Corp. (NYSE: SLW) and Yamana Gold, Inc. (NYSE: AUY) were hit for the second day in a row on Monday.
Based on Friday's move, Visch thinks downside in gold could target $1250 per ounce. However, he is cautious about a snapback rally, although for the time being gold looks more likely to take the elevator down than the stairs.
SPDR Gold Shares (NYSE: GLD) is lower by 7.5 percent. iShares Gold Trust (NYSE: IAU) is lower by a similar amount. iShares Silver Trust (NYSE: SLV) lost 10 percent.
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