Futures & Commodities

Mining stocks plunge after gold takes a hit

A dump truck hauls soil away from a pit at the Yanacocha gold mine in Cajamarca, Peru.
Dado Galdieri | Bloomberg | Getty Images

Shares of mining stocks slumped more than 9 percent on Tuesday after gold took a hit and slid to its lowest levels since the Brexit vote.

One of America's largest mining companies, Colorado-based Newmont Mining, shed about 10 percent to close at $34.25 a share, its lowest since the June 23 Brexit vote. The SPDR Gold Trust, a popular gold ETF, also suffered a more than 3 percent loss, another record low since the Brexit vote.

Barrick Gold, the largest gold mining company in the world, fell about 11 percent after announcing that its gold mines in Argentina had resumed operations.

The gold move was caused by "continued dollar strength, and traders looking for stops below such a big level," according to Saxo Bank's head of commodity research, Ole Hansen.

Shares of international mining giants like Yamana Gold, a Toronto-based gold producer, and Pan American Silver, another Canadian-based mining corporation, took some of the worst hits, plunging more than 12 percent and 10 percent, respectively.

-- Reuters contributed to this report