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US stocks drop, gold lower

The S&P 500 closed down more than 2% as Republicans blocked a bill designed to avert a government shutdown and increase the US’ debt ceiling.
US stocks drop, gold lower US stocks drop, gold lower US stocks drop, gold lower US stocks drop, gold lower US stocks drop, gold lower

Agnico Eagle Mines’ flagship LaRonde gold mine in Quebec

Staff reporter

Meanwhile Treasury yields rose to the highest point since June, the Wall Street Journal noted, lifted by optimism about the economic outlook and the prospects of tighter monetary policy.

Gold subsequently slumped towards US$1,734 an ounce on the spot market.

Agnico Eagle Mines (TSX: AEM) closed down 1.2% to C$63.03, remaining near a one-year low, on news it was merging with fellow producer Kirkland Lake Gold.

Kirkland Lake's Toronto-listed shares (TSX: KL) dropped 7.75%.

Base metals were mixed in London, where nickel closed down more than 2% and aluminium rose 2.1%.

Mining majors also diverged, with Glencore up 2.29% and copper producer Antofagasta losing 3.18%.