Base metals and precious metals weakened
On July 7, stocks related to metals weakened due to weakness in the respective sectors. At 3:07 PM EST, the PowerShares DB Base Metals (DBB) and the SPDR S&P Metals & Mining ETF (XME) fell ~1.2% and 0.79%. The SPDR Gold Shares (GLD) fell ~0.28%.
Rio Tinto eyes growth under new CEO
Rio Tinto’s (RIO) newly appointed CEO, Jean-Sébastien Jacques, said that investing in new assets is Rio Tinto’s primary growth plan. Considering the weaker market conditions, this strategy is different from the other miners who are focusing less on investments. As part of the plan, the new CEO wants to expand the list of commodities that Rio Tinto produces to grow the company. He also commented that the Brexit vote may not have a considerable direct impact on the company. As part of the changed growth plans, Rio Tinto kept the Simandou iron project on hold. It would cost ~$20 billion for mine development. Since the beginning of 2016, Rio Tinto has gained more than 4.5%. At 12:21 PM EST on July 7, Rio Tinto was trading at $30.52—a drop of ~1.2%.
Below are the top five and bottom five companies in the gold industry as of 3:40 PM EST on July 7.