Yesterday's announcement that Goldcorp (NYSE:GG) will be producing 8% less gold this year hit the company's stock, and shares fell 9.74% to $33.17.
The world's second largest miner said a drought in Mexico was slowing production at its Peñasquito mine, and the company was also experiencing production snafus at Red Lake. The company's full-year 2012 gold production guidance has been revised to between to 2.35 and 2.45 million ounces compared to previous guidance of 2.6 million ounces.
Spot gold finished the day flat at $1,568.64 an ounce. Gold is in a holding pattern as the markets try to gauge if the Federal Reserve will launch another stimulus plan to shore up the US economy.
"A few members expressed the view that further policy stimulus likely would be necessary to promote satisfactory growth in employment and to ensure that the inflation rate would be at the Committee's goal," said the Minutes of the Federal Open Market Committee that were released today.
"Several others noted that additional policy action could be warranted if the economic recovery were to lose momentum, if the downside risks to the forecast became sufficiently pronounced, or if inflation seemed likely to run persistently below the Committee's longer-run objective."
The S&P/TSX Composite Index was up 0.28% to 11,5644.64 due to support from oil stocks. Brent crude gained $2.26 to at $100.23 a barrel.