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The Canadian market is currently down 143 points or 1.15% in early afternoon trading. Two less than robust U.S. economic reports and falling commodity prices are at the root of the slide.
The spot price of gold is currently down almost $57 (-3.6%) to $1,505.73/oz and WTI oil has declined by $2.55 (-2.8%) to $91.06/bbl. As a result of the sizeable declines for both commodities it’s no surprise that the companies leading the Canadian market lower are gold and oil related.
Gold stocks just can’t seem to find a bottom as Barrick Gold (TSX:ABX,NYSE:ABX), Goldcorp (TSX:G,NYSE:GG) and Yamana Gold (TSX:YRI,NYSE:AUY) are three of the top five biggest detractors from today’s market. The stocks have declined by 5.5%, 3.1%, and 5.8% respectively thus far today. As we recently illustrated, these stocks may have further to fall before they can truly be considered “cheap”.
Because of oil’s weakness Suncor Energy (TSX:SU,NYSE:SU) and Canadian Natural Resources (TSX:CNQ,NYSE:CNQ) round out the top 5 index drags of the day. The stocks are down 2.5% and 4.3% respectively thus far.
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Fool contributor Iain Butler is short $32 July 2013 put options on Goldcorp, short $14 June put options on Yamana and owns shares outright in Barrick Gold and Yamana. The Motley Fool has no positions in the stocks mentioned above.