Coeur Mining (CDE) experienced a sharp 24-hour plunge of 9.18% in pre-market trading on Monday, as the precious metals sector faced significant pressure. The steep decline in CDE's stock price aligns with a broader selloff in gold-related assets, triggered by progress in US-China trade talks and a general easing of geopolitical tensions.
Gold prices fell as much as 1.8% in early Asian trading, reaching around $3,265 an ounce. This decline in the yellow metal's value has had a ripple effect across the mining sector, with several major gold mining companies seeing their stock prices drop. Harmony Gold and Gold Fields fell 6%, while other significant players like Agnico Eagle Mines and Newmont Mining experienced 4% declines.
The downturn in gold prices and mining stocks is attributed to reduced demand for safe-haven assets. As the US and China reported "substantial progress" in their recent trade discussions, investor sentiment has shifted away from precious metals. Additionally, the strengthening US dollar has made gold more expensive for most buyers, further dampening demand. Analysts suggest that while the current trend may test the lower range of gold prices, strong support is expected around the $3,200 mark, with potential for future record highs.
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