A post-Trump meltdown in prices of the so-called safe havens such as gold and silver took down with it the shares of Gold Resource Corporation (NYSEMKT:GORO).
Gold Resource slipped 14.23% Friday to $4.28 with 13.23 million shares traded.
Technically, Gold Resource is continuing on the downtrend that commenced September 30 from a high of $8.21.
It is now poised just above the 200-day moving average and it is likely that line will be tested.
Gold Resource has two mining units located in North America. The Oaxaca Mining Unit consists of 100% interest in 6 potential high-grade gold and silver properties in the southern state of Oaxaca, Mexico. The Nevada Mining Unit consists of 100% interest in two, with an option to acquire 100% interest in a third, potential high-grade gold properties in the Walker Lane Mineral Belt in western Nevada, U.S.A.
Gold Resource Corporation (NYSEMKT:GORO) has company
Keeping Gold Resource company in the losing side on Friday were gold names such as Newmont Mining (-8.91%), Argonaut Gold (-12.63%) and Royal Gold (-12.63%).
Gold miners were driven down in a bearish storm after gold prices plunged Friday to a five-and-half-month low – a move completely contrary to what was expected in the event of a Trump Presidential victory.
“Panic has subsided and the gold market continues to price in the prospect of a December rate rise. Rising bond yields have weighed on safe-haven demand… risk-on sentiment is here to stay until at least the end of the year,” Metal Bulletin analyst Andy Farida said.
A rising interest rate environment is very bearish for gold, and gold stocks, because it makes the yellow metal look inferior – that’s because investors receive no recurring return (such as interest) on their holding.
Gold Resource Corporation (NYSEMKT:GORO) in Q3
Gold Resource during the third quarter produced 6,066 gold ounces and 431,335 silver ounces. It reported $21.4 million in net sales and $1.6 million in net income. It generated operational cash flow of $8.7 million.
The company paid $0.3 million to shareholders in dividends, or $0.005 per share during the quarter. Cash and cash equivalents at quarter-end totaled $17.1 million.
For the full year, Gold Resource reaffirmed its outlook, saying it was targeting a plus or minus 5% production, of 26,000 gold ounces, 1,900,000 silver ounces, 1,100 tonnes of copper, 3,200 tonnes of lead and 12,900 tonnes of zinc.