Gold & Silver Group Dives On Metals Sell-Off

Gold, oil and other commodities prices continued to wobble Thursday as some investors took profits, others covered margin calls and others withdrew from commodities on fears that a price bubble was set to unwind.

The combination drove the silver and gold ore miners group, rated No. 2 of 197 groups in Thursday's IBD, to its fourth consecutive losing session. The group ended down 14% for the week -- its worst performance since July 2002.

The Streettracks Gold Trust GLD ETF ended the week down 7.9%, its worst weekly finish since its November 2004 inception.

The biggest players in the ores group are also the world's largest gold and silver producers.

Earnings performance among those producers has been squeezed hard by rising production costs.

Many producers negotiated long-term supply contracts after gold came off a price peak in 2006. Gold went into a new rally in August, and has since climbed 46%.

The first-quarter outlook for group heavyweight Barrick Gold ABX calls for 19% earnings growth while sales jump 74% -- the biggest top-line advance in five quarters. Its shares gapped down 6% Thursday to their lowest level since December.

Analysts see Newmont Mining NEM earnings jumping 382% on 25% sales growth, vs. weak comparisons last year. The stock gapped down 4% Thursday to its lowest close since October.

Consensus estimates call for Yamana Gold's AUY Q1 EPS to rise 1,900%, also vs. weak comparisons. Yamana slipped 4% Thursday, to a four-week low.