Newcrest Mining Ltd., Australia’s largest gold mining company, fell to its lowest in more than two months in Sydney trading, leading gold miners lower after prices of the precious metal dropped this week.
Newcrest fell as much as 4.2 percent to A$30.00 and traded at A$30.09 at 2:18 p.m. local time, set for its lowest close since Dec. 30. The benchmark S&P/ASX 200 index declined 0.4 percent.
Gold for immediate delivery fell for a fourth day, taking its decline to 4.1 percent this week, set for its biggest weekly drop since December on expectations that the Federal Reserve won’t offer fresh stimulus as the U.S. economy shows signs that it is gaining momentum.
“Gold stocks are always a bit soft when gold prices are weaker,” Warwick Grigor, an analyst at BGF Securities Pty, said by phone from Sydney. “Everything is supportive of a higher gold price but just at this moment people are trading other things and leaving gold alone for the present.”
Alacer Gold Corp. fell 5.7 percent to A$8.22, set to close at its lowest level since July. OceanaGold Corp. lost 5.4 percent to A$2.30, poised for its biggest decline since December.