Gold drop 8216 to hit mining firms 8217
Mining firms will be hit by the falling price of gold.
The fall in the value of gold is going to have a major negative impact on mining companies.
Gold companies big and small have been found to be selling off on Monday and Tuesday (April 15th and 16th) as the price of the precious metal has dropped.
Speaking to Reuters, Veritas Investment Research analyst Pawel Rajszel explained everyone was previously enjoying the "high tide" of gold prices, but this has now come to an end.
Evolution Mining, which has five gold and silver mines in Australia, lost 17 per cent of its value on the Australian Securities Exchange yesterday, while Alacer Gold, which operates gold mines in Turkey and Australia, was down by ten per cent.
National Bank Financial analyst Paolo Lostritto added that "quite a few" companies are estimated to be losing money at this gold price.
Eagle Research Advisory managing director Keith Goode recently told AAP that the price of gold regularly bounces back after seeing a sharp dip in its value such as the one that has occurred in the last week.
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