Gold-Mining Stocks Post Significant Decline as Rate-Cut Speculation Weakens

Global Gold-Mining Stocks Plummet Amid Iran War

NYSE Arca Gold Miners Index fell 6.6% on Thursday, its lowest level since December, as traders reassess expectations for interest-rate cuts in light of surging oil prices. The index, which includes companies from the US, Canada, the UK, and Australia, is now down approximately 1.9% in 2026.

The sector's weakness deepened as escalating attacks in the Persian Gulf drove up crude prices and pushed down gold for a seventh consecutive session, marking the longest losing streak for the metal since October 2023. Since the start of the war, gold prices have declined 12%, making it harder for central banks to reduce borrowing costs. This poses a risk for gold, which typically performs better when rates are lower, as it offers no yield.

Traders are no longer anticipating Federal Reserve policy easing this year and some are even hedging for a potential interest-rate hike. As a result, gold-mining stocks are facing pressure from higher rate expectations, a stronger US dollar, and lower gold prices.

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The US dollar has emerged as a key haven during the conflict, with the Bloomberg Dollar Spot Index gaining 1.5% in March. As gold is priced in dollars, the precious metal has become relatively more expensive for buyers in other currencies.

Despite the challenges, large mining firms such as Newmont Corp., Agnico Eagle Mines Ltd., and Barrick Mining Corp. are expected to see significant earnings growth, with Barrick projected to register a 55% year-over-year increase and Agnico Eagle expected to see a 72% year-over-year increase. Both companies are based in Toronto.

However, if oil prices stabilize and pressure from interest rates and the dollar eases, miners with net cash, lower costs, and high-quality assets like Newmont and Agnico Eagle will likely rebound.