Gold-Mining Stocks Fall to 4 1/2-Year Low: Johannesburg Mover
The FTSE/JSE Africa Gold Mining Index (JGOLD) declined as much as 7.4 percent and was 7.3 percent lower at 1,504.95 by 10:41 a.m. in Johannesburg, the six-member gauge’s lowest intraday level since Nov. 21, 2008.
Gold for immediate delivery fell as much as 3.9 percent to a two-year low on expectations that demand for haven assets will contract as the global economy improves. South Africa is the world’s fifth-biggest producer of the metal.
“Sentiment toward the gold sector is very despondent,” Simon Fillmore, chief executive officer of Independent Securities (Pty) Ltd., said by phone from Johannesburg. “Gold shares have been destroyers of shareholder value over a long period of time.”
Harmony Gold Mining Co. (HAR) slumped 9.1 percent to 45.49 rand, the lowest level in almost eight years, making it the index’s worst performer. AngloGold Ashanti Ltd. (ANG), the world’s third- biggest producer of the metal, declined 7.8 percent, the biggest drop on an intraday level since May 18, 2009, to 173.78 rand.
The gold-mining gauge’s 14-day relative strength index slipped below 30 on April 11 and was at 19, the lowest level since April 10, 2012. A reading below 30 signals to technical analysts a security is undervalued and poised to rebound.
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