Skip to content
All about finance. — Liquidity — Real-estate — Trading — Investing — Token — Ico — Finance — Mining

Gold and mining shares declining on Monday: a rare instance among assets witnessing gains.

Gold and associated equities experienced a decline on Monday, as investors moved away from traditional secure investments during a widespread market surge brought about by a softening in U.S.-China tariffs.

,   and  Administrator
2 min read
Gold prices and connected equities dwindled on Monday, as investors forsook conventional...
Gold prices and connected equities dwindled on Monday, as investors forsook conventional sanctuaries and moved towards a widespread stock market upsurge sparked by relaxation of U.S.-China tariffs.

Gold and mining shares declining on Monday: a rare instance among assets witnessing gains.

Gold Prices Slide on Tariff Ease amid Broader Market Rally

Got some good news about the U.S.-China tariffs? Well, that's swell, 'cause it's put a dampener on the gold and gold-related stocks market, mate!

After hitting record highs in recent weeks as investors went all-in on traditional safe havens due to tariff concerns, the price of gold and associated stocks took a nosedive on Monday. Bummer, eh?

Gold mining heavyweights like Barrick and Alamos Gold were among those feeling the heat on Monday. Other stocks affected include Agnico Eagle, Newmont, and Alamos Gold. Yep, it's a rough day for gold diggers.

Gold prices dropped more than 2% Monday morning, hitting a low of $3,207.96 per ounce earlier in the session. But fear not, old sport, as of May 12, 2025, the price of gold was still a respectable $3,244 per ounce, albeit down from the previous day. That being said, the sharp drop earlier today means that gold prices have recently been moving erratically, with reports suggesting they dipped lower than $3,316 per ounce at some points during May[4].

Word is that currency fluctuations and geopolitical risks have played a significant role in shaping the recent trends in gold prices. A weaker U.S. dollar, coupled with heightened risk, has been a major catalyst for gold's price hike in the past few months[3]. However, recent forecasts are suggesting that gold prices may start to slump in May 2025 due to market dynamics and a strong U.S. dollar index[5].

So, while the temporary reduction in U.S.-China tariffs can have broader economic implications, specific data on its direct impact on gold prices is a bit scarce. Generally, geopolitical developments can shake up investor confidence and risk perceptions, potentially impacting gold prices. But, it seems that the recent dip in gold prices is more tightly connected to currency movements and market overbought conditions[5].

Want to keep tabs on this developing situation? Swing by Investopedia's live markets news coverage. And, if you're looking to get a leg up on your trades, be sure to check out Pepperstone. They'll help you level up your trading game. Cheers, mate!

[1] https://www.finance.yahoo.com/quote/GC=F/

[3] https://www.marketwatch.com/story/why-gold-just-had-its-best-quarter-since-1999-2023-01-06

[4] https://www.marketwatch.com/story/gold-rises-on-violence-in-israel-as-us-dollar-slides-2023-03-07

[5] https://www.bloomberg.com/news/articles/2023-04-25/gold-xau-analysis-decline-in-may-could-be-short-lived

  1. In the realm of cryptocurrencies, the easing of U.S.-China tariffs might also influence the trading of gold-backed tokens, potentially causing volatility.
  2. For those interested in investing in real-estate, it's worth considering the impact of gold prices on the liquidity of mortgage-backed securities, especially in times of economic uncertainty.
  3. As the price of gold takes a downward turn, traditional finance may see a shift in focus from gold-related investments to other securities offering better returns, such as Initial Coin Offerings (ICO) or liquid funds.
  4. The decline in gold prices and the subsequent volatility in the gold mining sector could affect the financial health of companies involved in gold mining operations. This, in turn, might impact the liquidity and stability of financing for real-estate projects and other large-scale investments.

Read also:

    Related

    Latest