JSE gold stocks hammered

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LonminMine

Independent Newspapers.

Picture: Boxer Ngwenya.

Johannesburg - Shares of South African gold producers slide as global risk aversion mounts on market perceptions the US Federal Reserve could start trimming its stimulus programme next week.

Johannesburg's Gold Mining Index is down 5.55 percent to 1,038.73 at 12:15 SA time.

The index has lost over half its value this year.

Sibanye Gold is down almost 7.5 percent and AngloGold Ashanti, Africa's biggest bullion producer, is 6 percent lower at 123.51 rand.

“It's a risk-aversion or risk-off trade now and so all of the cyclical stocks like gold are getting whacked,” says Abri du Plessis, Chief Investment Officer at Gryphon Asset Management.

Bullion's spot price is steady around $1,245 an ounce but analysts attribute this to technical factors. - Reuters


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