McEwen Mining's stock plummeted 5.38% during intraday trading on Tuesday, mirroring a sharp decline in the price of gold.

The drop in the gold mining company's shares followed a broader sell-off in the precious metal, driven by fading hopes for a U.S.-Iran peace deal. This geopolitical development lifted the U.S. dollar and oil prices, clouding the interest rate outlook ahead of key U.S. inflation data. A stronger dollar makes dollar-denominated commodities like gold more expensive for holders of other currencies.

Furthermore, rising energy prices have increased U.S. bond yields, stoking concerns about persistent inflation and reducing expectations for Federal Reserve rate cuts this year. Higher interest rates typically weigh on non-yielding assets such as gold, negatively impacting the profitability and outlook for gold mining firms like McEwen Mining.