Wall Street closes at a record for the first time since end of January
Investing.com -- Shares in gold mining companies fell sharply on Monday as bullion dropped to a four-month low, extending steep losses from last week amid escalating Middle East tensions that have fueled inflation concerns and shifted expectations toward higher global interest rates.
Major gold miners, including Newmont, Barrick, Agnico Eagle, and AngloGold Ashanti, all dipped between 5% and 6% in premarket trading by 05:22 ET.
The pullback comes after spot gold fell 4.4% to $4,292.88 per ounce, marking a ninth straight session of declines. Prices earlier slid more than 8% to $4,097.99, the lowest level since November 24.
The latest drop follows gold’s worst weekly performance in more than four decades. The metal fell over 10% last week, its steepest weekly decline since February 1983, and is now down roughly 25% from its January 29 record high of $5,594.82 per ounce.
U.S. gold futures for April delivery dropped 6.4% to $4,280.
The selloff comes as the conflict involving Iran entered its fourth week, with oil prices holding near $100 per barrel. The shift in market expectations from rate cuts toward potential rate hikes has weighed on gold, which typically loses appeal in a higher-rate environment.
Iran said on Sunday it would target energy and water infrastructure in neighboring Gulf states if U.S. President Donald Trump follows through on threats to strike Iran’s electricity grid.
At the same time, the closure of the Strait of Hormuz has kept crude prices elevated, raising concerns over inflation through higher transport and production costs. Although inflation can support gold demand, higher interest rates tend to pressure the non-yielding asset.
Market pricing now reflects rising expectations for tighter U.S. monetary policy, with futures indicating the Federal Reserve is more likely to raise rates than cut them by the end of 2026, according to CME’s FedWatch tool.
Other precious metals also declined. Spot silver fell 4.7% to $64.57 per ounce, while platinum dropped 6% to $1,809.25, with both hitting their lowest levels since mid-December earlier in the session.