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Gold price drops

The gold price has recovered slightly since hitting its lowest point since early 2017 yesterday, below US$1,195 an ounce on the spot market.
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TSX gold stocks drop, Australians rise

Staff reporter

The precious metal price was up US82c to $1,194.25 at the time of writing.

Despite Turkey turmoil, the traditional safe-haven asset has lost some of its appeal due to the strengthening US dollar.

"While the dollar has been jumping on Turkey's financial crisis, we maintain that investors should not dive into a gold sell-off," Huatai Futures said in note, Bloomberg reported.

"Market volatility is likely to hit the stock market, and US economic growth might slow more than expected."

Metals and mining stocks closed down 1.44% on the S&P500 yesterday and 2.65% lower on the gold-heavy S&P/TSX Composite Index.

Toronto's diversified sector closed down 1.51% and the gold subset was down more than 3%.

More than half a dozen gold miners posted declines of more than 5%.

Kirkland Lake Gold (TSX: KL) shed 7.52% and SEMAFO lost 6.82% after reporting deaths following an "armed incident" on the road to its Boungou mine in Burkina Faso.

Australia's metals and mining sector on the S&P/ASX200 was in positive territory in afternoon trade, including the gold miners.

Producer St Barbara (ASX: SBM) was up more than 4.2% at the time of writing on no news since its presentation to the Diggers & Dealers mining forum in Kalgoorlie last week.

The Australian dollar gold price was up A$1.49 to $1,642.68/oz this afternoon.