Mining stocks are bearing the brunt of price volatility; pictured, gold bullion from the American Precious Metals Exchange in New York. Photo by Reuters.
Oceana has declined from $3.40 to around $2.80 yesterday, while spot gold was down slightly again in overnight trading around $US1617.
Craigs Investment Partners broker Peter McIntyre said high spot gold prices had prompted some profit-taking and it was likely some European nations had also sold gold to pay for the burden of the European financial crisis.
In spite of Oceana releasing positive market updates in recent weeks, it and other mining stocks have been undermined by investors believing metals will be in less demand in the future.
Mr McIntyre said since July, most metals had weakened.
He expected gold prices to fall further to $US1200-$US1300 and hold there.
