Shares of major gold producers tumbled Tuesday after the price of gold posted its steepest one-day decline since 2013.
Barrick Gold (NYSE:B), Newmont (NYSE:NEM), and Agnico Eagle Mines (NYSE:AEM) (TSX:AEM:CA) each slid more than 8% in early trading, while the VanEck Gold Miners ETF (NYSEARCA:GDX), which tracks leading miners, plunged 9.5%, marking its worst session since the pandemic market turmoil of March 2020.
Gold prices (XAUUSD:CUR) fell as much as 6.3% to $4,112.70 an ounce, reversing from Monday’s record high above $4,380.
Analysts attributed the sharp pullback to a stronger U.S. dollar, which makes bullion more expensive for buyers using other currencies, and to easing demand for safe-haven assets as geopolitical and trade concerns temporarily cooled, according to several news reports.
Investors have also pared back defensive bets ahead of next week’s planned meeting between U.S. President Donald Trump and Chinese President Xi Jinping, which has raised hopes for progress on trade relations. Seasonal buying in India, one of the world’s largest gold consumers, has also waned following festival season demand, further weighing on prices.