Evolution Mining Ltd (EVN.AU) experienced a sharp decline of 8.23% during intraday trading on Wednesday, as Australian gold stocks halted their recent record run. The retreat comes as gold prices took a breather, falling more than 1% overnight.

The downturn in gold stocks was triggered by comments from U.S. Treasury Secretary Scott Bessent, which hinted at a potential thaw in U.S.-China trade tensions. This development fueled optimism in equity markets and strengthened the U.S. dollar, consequently reducing the appeal of gold as a safe-haven asset.

Evolution Mining was not alone in its descent, as the broader Australian gold stocks index (.AXGD) fell 5.6% from its record high achieved in the previous session. The sub-index hit its lowest level in a week, poised to snap a seven-session winning streak. Despite this setback, it's worth noting that the AXGD had surged an impressive 54.9% this year, significantly outperforming the 4.2% decline in the benchmark index (.AXJO).