Evolution Mining Ltd (EVN.AU) saw its stock plummet 8.23% in Wednesday's trading session, as the Australian gold sector experienced a significant pullback. The decline comes as gold prices fell more than 1% overnight, ending a recent rally in the precious metal.

The retreat in gold stocks was widespread, with the Australian gold sub-index (.AXGD) falling 5.6% from its record high reached in the previous session. Evolution Mining, one of the country's prominent gold miners, was among the hardest hit, reaching its lowest level in a week.

The selloff in gold 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, both factors that typically pressure gold prices. As a result, investors shifted away from safe-haven assets like gold, impacting companies in the sector.

Despite this setback, it's worth noting that the Australian gold sub-index has surged 54.9% this year, significantly outperforming the broader market. This context suggests that while the current decline is substantial, it comes after a period of strong performance for gold stocks, including Evolution Mining.