Geopolitical Relief Triggers Gold Selloff: Prices Dip Below $2,350 Mark, Mining Stocks Hit Hard
Gold prices declined 2.7% Monday to below $2,350 as of 3 p.m. EST as geopolitical risks wane.
Silver, closely associated with gold, experienced an even sharper downturn, plummeting by 5.1% — its most substantial drop since last October.
What Happened: Market sentiment toward the precious metals have turned cautious. Traders await key economic data releases scheduled for this week, which could fuel greenback demand.
These include the advance estimates of U.S. gross domestic product growth for the first quarter on Thursday and the pivotal March Personal Consumption Expenditure (PCE) price index, regarded as the Federal Reserve’s favored inflation gauge, set for release on Friday.
Gold is currently on a four-week winning streak, yet Monday’s session represented its most significant decline since June 2022.
Chart: Gold Faces Worst Day In Years As Geopolitical Tensions Cool
Mining Stocks Moving Monday
Plummeting gold prices weighed on mining stocks, with the VanEck Gold Miners ETF (NYSE:GDX) witnessing a 4.3% decline. Silver miners, as tracked by the Global X Silver Miners ETF (NYSE:SIL), fell over 3%.
Gold & Silver Miners Take Heavy Hits: Top 10 Fallers On Monday
| Name | Market Cap | 1-Day % |
| Aya Gold & Silver Inc. (NYSE:AYA) | € 1.20B | -8.65% |
| AngloGold Ashanti plc (NYSE:AU) | € 8.548B | -8.58% |
| Wesdome Gold Mines Ltd. (NYSE:WDO) | € 1.06B | -7.07% |
| DRDGOLD Limited (NYSE:DRD) | € 643.72B | -6.90% |
| OceanaGold Corporation (NYSE:OGC) | € 1.47B | -5.02% |
| Coeur Mining, Inc. (NYSE:CDE) | € 1.61B | -4.44% |
| Torex Gold Resources Inc. (NYSE:TXG) | € 1.15B | -4.12% |
| K92 Mining Inc. (NYSE:KNT) | € 1.18B | -4.04% |
| Hecla Mining Company (NYSE:HL) | € 2.95 | -3.95% |
| Newmont Corporation (NYSE:NEM) | € 40.62B | -3.83% |
Israel reportedly averted plans for a more extensive counterstrike on Iran last week, following intense diplomatic pressure from the U.S. and other foreign allies, coupled with the effective neutralization of the primary threat posed by a potential Iranian assault on Israeli soil.
Read Now: Is The US National Debt Unsustainable? ‘We Can’t Have A Deficit Of 7% Of The GDP’