De Grey Mining down 7% amid struggling gold prices

The De Grey Mining Limited (ASX: DEG) share price is down 7.31% today.

De Gray shares peaked at the open today at a high of $1.08, before tumbling to a low of 99.5 cents at midday. At the time of writing, shares of the gold explorer trade for $1.015.

The S&P/ASX All Ordinaries Gold Index (ASX: XGD) is down, too, at a 4.34% loss.

Meanwhile, other ASX gold shares also have a rough end to the week.

Gold Road Resources Ltd (ASX: GOR) is down 6.2%, and Ioneer Ltd (ASX: INR) is down 1.14%.

There are no announcements from the company today to make sense of the sell-off in its share price. But some developments have emerged over the last week. Let’s investigate what happened.

What’s going on with De Grey shares?

According to Markets Insider, the spot price for gold has declined 2.53% over the past week. But the spot price has recovered by a modest 0.16% today.

Yesterday, gold reached a seven-week low in US trading. The price of silver suffered, too, with the precious metals competing for investor capital amid a stronger US dollar and soaring yields on treasury bills, as reported by Kitco.

Some positive developments occurred for De Grey, too, over this time, including making an investor presentation at the precious metals summit conference in Beaver Creek, Colorado, on Thursday.

Some highlights from the report were that De Grey’s Mallina site has the potential to be one of Australia’s top five gold mines for FY22 production volumes. Further, it claims to have one of the world’s largest undeveloped gold projects.

On Monday, the De Grey share price shot up to a four-month high.

De Grey share price snapshot

The De Grey Mining share price is down 15.42% year to date. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 11.05% over the same period.

The company’s market capitalisation is $1.54 billion.

The post De Grey Mining down 7% amid struggling gold prices appeared first on The Motley Fool Australia.

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More reading

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• 3 ASX 200 mining shares going great guns on Monday
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• Here are the top 10 ASX 200 shares today

Motley Fool contributor Matthew Farley has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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