Canada's main stock index stumbled on Friday after a robust U.S. jobs report showed growing strength in the world's largest economy but lessened the appeal of safe-haven assets such as bullion, causing gold-mining stocks to dive.
Shares of gold producers dropped almost 5 percent, with Barrick Gold Corp the world's largest gold miner, losing more than 5 percent of its market value to hit its lowest level in about 21 years.
Increasing signs that U.S. economic recovery is gathering speed raised fears that the Federal Reserve might dial down its massive stimulus program later this year.
Data showed U.S. job growth was stronger than expected in June and that the employment count for the previous two months was higher than initially reported.he materials sector, which includes mining stocks, declined the most among the major groups, giving back 2.1 percent. Gold miners tumbled in a volatile session after the price of the precious metal fell, with the U.S. dollar rising on the jobs news.
Barrick fell to $13.52, hitting its lowest level since May 1992.
Source Reuters
