Gold miners face new challenge in plummeting gold price

TORONTO: A steep drop in the price of gold will hit profits at mining companies that are already straining under rising costs, and could prompt some miners to rethink their capital spending.

Gold companies big and small sold off on Monday and Tuesday as the prospect of central bank gold sales and fears that the U.S. might reduce monetary stimulus tipped spot gold prices off a ledge, to a more than two-year low around $1,300 an ounce.