Australian Mining Stocks Are Getting Hosed On Weaker Iron Ore And Gold Prices

Rio Tinto’s Brockman 2 mine.

It’s funny how the focus swings on and off the iron ore price at the moment when the reality is that the trend, in a technical sense, is clearly lower.

Today is one of those days when the focus is on the falling ore price which dropped 2.45% in futures trade overnight.

The impact has been that resource stocks in Australia are under pressure with Atlas Iron down 2.65% this morning. Arrium and Rio Tinto are down 2.05% while BHP is off 1.6%.

What’s driving the iron ore fall will be the news that Chinese authorities are still looking at closing down a large number of steel mills, including some big ones, together with the record volumes coming out of the Pilbara.

Equally as we discussed here at Business Insider earlier this month – traders are just doing what traders do and looking to find bottom.

This bad news is that the bottom of the long term down trend is not until the Iron Ore moves in the $70’s per tonne. It that’s the case pressure will continue on Australia’s miners and the ASX.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.