Sandstorm Gold Ltd (SAND) saw its stock price plummet 5.33% in pre-market trading on Monday, as the broader gold sector faced significant pressure following a sharp decline in gold prices. The precious metal's value dropped by 3% to below $3,220 an ounce, primarily due to progress in US-China trade talks and easing geopolitical tensions.

The selloff in gold stocks was widespread, with several major players in the industry experiencing substantial losses. Gold Fields and Harmony Gold were among the hardest hit, falling 10% and 9% respectively in pre-market trading. Other notable declines included Coeur Mining (-7%), and industry giants Newmont and Kinross, both down 5%.

The retreat in gold prices and subsequent pressure on gold stocks can be attributed to several factors. Firstly, signs of progress in trade negotiations between the United States and China have reduced demand for safe-haven assets like gold. Both countries reported "substantial progress" following discussions in Switzerland, agreeing to lower tariffs on each other's goods. Additionally, a strengthening US dollar has made gold more expensive for most buyers, further dampening its appeal. Despite the current downturn, some analysts, such as Robert Rennie from Westpac Banking Corp., suggest that dips below $3,200 in gold prices could be well-supported, potentially leading to fresh record highs in the future.