Shares of Newmont Mining (NEM), the world's largest gold miner, plunged 5.89% in pre-market trading on Monday, reflecting a broader decline across the precious metals mining sector. The sharp downturn comes as gold prices experienced a significant drop amid renewed optimism for a potential US-China trade deal and a strengthening dollar.

The slump in gold prices, with spot gold down 1.3% at $4,059.22 per ounce, is primarily attributed to improving risk appetite for equities as hopes for easing US-China trade tensions grow. This shift in market sentiment has led investors to move away from safe-haven assets like gold, directly impacting mining companies' valuations. The potential US-China trade deal is not only affecting gold prices but also strengthening the US dollar, further pressuring the precious metals market.

Adding to the downward pressure, market participants are closely watching major central bank meetings scheduled for this week, including the U.S. Federal Reserve, which could provide cues on potential interest rate cuts and influence gold's appeal as a non-yielding asset. As Newmont Mining is often considered a bellwether for the gold mining industry, its significant pre-market decline highlights the challenges facing precious metal miners in the current market environment.