ADRs in Focus: Latin American mining ADRs fall with gold

U.S.-traded shares of Latin American mining companies tumbled on Thursday as gold prices fell to a four-month low.

On the New York Mercantile Exchange, gold futures plunged $19.60 to settle at $889.40 an ounce after the dollar rose against the euro. Gold is traditionally viewed as a hedge against inflation, and its price often moves opposite the dollar.

Earlier in the session, gold reached as low as $884.50, its lowest level since Jan. 10.

ADRs of Latin American mining companies fell sharply on the news. Peru's Compania Minas Buenaventura, which mines gold, silver and other metals, gave up $6.54, or 9.6 percent, to $61.20.

Brazil's Companhia Vale do Rio Doce shed $1.74, or 4.4 percent, to $37.47. Vale, which mines and processes primarily iron, is scheduled to report first-quarter earnings on Friday.

The broader ADR market edged lower, with the Bank of New York Latin America ADR index falling 7.35 points, or 1.58 percent, to 457.91.

And the Bank of New York Composite ADR index gave up 0.81 points, or 0.45 percent, to 179.82.

ADRs, or American Depository Receipts, are securities that allow foreign companies to be traded on U.S. markets.