Gold futures for Dec 13 delivery were trading lower by 0.88 percent to $1,312.20 per ounce on the New York Commodities Exchange ahead of Friday’s closing bell, capping a week that saw contracts lose almost $40. The spot price of the metal was also down two-thirds of a percent to $1,314 per ounce on the day, after opening the week at over $1,350.
Falling gold prices have become part of the wallpaper in 2013, as the Fed’s monetary policy continues to incentivize investors to move into equities. Not surprisingly, the over-$400 loss in the spot price has put the hurt on gold stocks as well.
Canada’s Barrick Gold Corporation (ABX) , the second-largest in the industry by market cap, saw shares diving even lower than the price of the yellow metal it mines. The company’s stock was down 7.5 percent to $17.95 ahead of Friday’s closing bell after the announcement that it would be offering yet another $3.45 billion of shares that adds up to one of the largest share offerings in the history of the gold industry.
The company’s design with the newly offered tranche of shares is to slice off some $2.6 billion of its total debt of $15 billion, but it further dilute the value shares of existing stakeholders. Furthermore, the decision follows on the heels of yesterday’s announcement that its massive and costly Pascua-Lama mine on the Argentine-Chilean border would be suspended until further notice.
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