Gold plunge knocks CNMC Goldmine off pedestal after 400% gain

This follows a recent wave of sell-offs amid profit taking by investors who fear that gold’s recent rally has left it overvalued

Shares of CNMC Goldmine fell on Wednesday (Oct 22) morning as the gold rally appears to be cooling.

The yellow metal has hit successive record levels through the year, propelling the meteoric rise of CNMC Goldmine shares, which were up by nearly 400 per cent year to date as at Tuesday.

Shortly after the market opened on Wednesday, the counter fell to S$1.06. It was down by 12.4 per cent or S$0.15 from Tuesday’s closing price of S$1.21, with some 840,300 shares changing hands.

By 9.29 am, it was trading at S$1.11, down by S$0.10 or 8.3 per cent, with more than 5.1 million shares traded.

A recent wave of sell-offs amid profit taking by investors who fear that gold’s recent rally has left it overvalued has seen the yellow metal post sharp drops. Spot gold prices posted the steepest decline in over a dozen years and plunged 6.3 per cent, according to Bloomberg.