Evolution Mining Ltd (EVN.AU) saw its stock price plummet 5.00% during intraday trading on Friday, contributing to a significant decline in the Australian gold sector.

The drop was driven by a broader weakness in gold prices, with bullion falling approximately 2%. Analysts attributed the decline in gold to escalating tensions in the Middle East, which pushed oil prices higher and heightened concerns about persistent inflation. This environment reinforced market expectations that U.S. interest rates would remain elevated for longer, diminishing the appeal of non-yielding assets like gold.

The sell-off was part of a wider downturn for Australian mining and gold stocks, dragging the benchmark S&P/ASX 200 index to its worst session in over two weeks. The specific gold stock sub-index fell to its lowest level since mid-June.