The pullback in the precious metal follows a run of five weekly gains that set record highs along the way, providing a tailwind for mining stocks along the way, on rising demand for havens. That momentum hit a wall Monday after Iran downplayed recent strikes by Israel, saying the country received “the necessary response at this stage.”
The previous week’s 2% gain in gold prices quickly headed lower “after Iran downplayed the strikes as limited, signaling a potential de-escalation in the Israel-Iran conflict,” BofA Global Research noted in a report Monday. The VanEck Gold Miners ETF fell as much as 4.8% on Monday to mark its biggest intraday drop since Feb. 13, snapping a three-day winning streak. Gold snapped a three-day winning, with prices falling as much as 2.6% to $2,329 an ounce Monday
Newmont Corp. was among the biggest decliners in the S&P 500 Index on Monday, falling as much as 4.2%, to mark its biggest intraday decline since March 12. Peers falling included Barrick Gold Corp., which dropped 3.9%, and Agnico Eagle Mines Ltd., down 2.7%.Gold price tumbles as haven demand wanes amid easing war risksAbraSilver gets $15m investment from Kinross, Argentina power provider