Shares of major gold mining companies fell sharply on Monday as gold prices dropped to their lowest level in four months, extending a steep decline from last week as geopolitical tensions and inflation concerns push investors to reassess the outlook for global interest rates.
Leading producers including Newmont (NYSE:NEM), Barrick (NYSE:B), Agnico Eagle (NYSE:AEM) and AngloGold Ashanti (NYSE:AU) were each down roughly 5% to 6% in pre-market trading as of 11:22 a.m. ET.
The pullback in mining stocks comes as spot gold slid 4.4% to $4,292.88 per ounce, marking a ninth straight day of losses. Earlier in the session, prices had dropped more than 8% to $4,097.99, the lowest level recorded since November 24.
The latest drop follows an exceptionally weak week for the precious metal. Gold declined by more than 10% last week, its sharpest weekly fall since February 1983, and is now roughly 25% below the record high of $5,594.82 per ounce reached on January 29.
Meanwhile, U.S. gold futures for April settlement fell 6.4% to $4,280.
The pressure on gold has intensified as the conflict involving Iran enters its fourth week and oil prices remain near $100 per barrel. As markets shift from expecting interest rate cuts to anticipating possible rate hikes, gold — which offers no yield — has come under renewed pressure.
Iran warned on Sunday that it would target energy and water infrastructure in neighboring Gulf countries if U.S. President Donald Trump follows through on threats to strike Iran’s electricity grid.
At the same time, the shutdown of the Strait of Hormuz has kept crude prices elevated, raising fears of inflation through higher transportation and production costs. Although inflation can sometimes support demand for gold, higher interest rates generally weaken demand for the non-yielding asset.
Market pricing now reflects growing expectations for tighter U.S. monetary policy. According to CME’s FedWatch tool, futures markets indicate that the Federal Reserve is increasingly expected to raise interest rates rather than cut them by the end of 2026.
Other precious metals also moved lower. Spot silver fell 4.7% to $64.57 per ounce, while platinum declined 6% to $1,809.25, with both metals touching their lowest levels since mid-December in the previous session.