CAPITAL MARKETS

Mining stocks out of favour

Metals and mining stocks lower

Staff reporter

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Copper was lower amid reports of an extended negotiation that could avert a strike at the BHP-operated copper mine in Chile.

Meanwhile the US dollar climbed back to a 14-month high, Bloomberg reported, adding the bull market in US stocks was a week away from becoming the longest in history.

The strengthening US dollar saw the gold price fall further and it was worth just over US$1,187 an ounce on the spot market earlier.

Metals and mining stocks closed 0.7% lower on the S&P500 yesterday and down 0.94% in London, where Randgold Resources (LSE: RRS) closed down 1.34%.

Toronto's metals and mining stocks finished 1.41% lower yesterday and the copper sector was lower still, down 2.43% with First Quantum Minerals (TSX: FM) closing 3.42% lower.

Pretium Resources (TSX: PVG) was a standout in the downbeat gold sector, closing up more than 8% as it announced a board change.

Australia's metals and mining stocks were down 1.43% at the time of writing.

The gold subset was hardest hit after yesterday's resilience, down more than 2.6% mid-afternoon.

Yesterday's investor favourite St Barbara (ASX: SBM) was today down about 4.7% towards the end of the day's trading.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

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