Gold Miners Retreat After Bullion Slips As US-China Agree To Framework Of A Trade Agreement
- Shares of Newmont, the world’s biggest gold miner, slipped 3.4%, Barrick stock fell 1.6%, AngloGold Ashanti slipped 2.1% and Gold Fields stock declined 1.6% at the time of writing.
- U.S. Treasury Secretary Scott Bessent said on CBS’s “Face the Nation” that the 100% tariffs that Trump had threatened earlier are “effectively off the table.”
- Spot gold was down 1.3% at $4,060.98 per ounce at the time of writing.
Gold miners slipped in premarket trading on Monday, tracking declines in the precious metal, after the U.S. and China agreed on a framework for a trade deal ahead of the meeting of the two countries’ top leaders.
Shares of Newmont, the world’s biggest gold miner, slipped 3.4% in Monday’s early premarket session, Barrick stock fell 1.6%, AngloGold Ashanti slipped 2.1% and Gold Fields stock declined 1.6% at the time of writing. The VanEck Gold Miners ETF also fell 1.2%.
What’s Driving Bullion Lower?
After posting the first weekly decline since August in the previous 7-day period, gold began the week in the red after U.S. and Chinese officials said that a preliminary agreement had been reached to extend the trade truce between the two countries.
On the sidelines of the talks in Kuala Lumpur, Malaysia, U.S. Treasury Secretary Scott Bessent said on CBS’s “Face the Nation” that the 100% tariffs that Trump had threatened earlier are “effectively off the table.” He also assured that China will resume soybean purchases and delay the imposition of curbs on rare-earth exports.
China’s top trade negotiator, Li Chenggang, described the talks between the two countries as “candid and in-depth discussions” on the trade deal, adding that the two sides had reached a “preliminary consensus.” The easing of trade tensions stemmed safe-haven flows, which pushed gold prices to record highs in recent weeks. Spot gold was down 1.3% at $4,060.98 per ounce at the time of writing.
What Is Retail Thinking?
Retail sentiment on Stocktwits about the GDX ETF was still in the ‘extremely bullish’ territory at the time of writing, while traders were also ‘extremely bullish’ about Newmont shares.
What Are Analysts Saying?
“Technically, while gold holds above $4,000, a retest of the $4381 high in the short term remains possible. However, a break below $4,000 would likely trigger further liquidations and warn of a deeper pullback towards $3,400,” IG analyst Tony Sycamore said on X.
Gold investors will now be eyeing the outcome of the Federal Open Market Committee meeting, scheduled for Oct. 28-29. An overwhelming majority of traders expect the U.S. central bank to deliver a 25-basis-point cut in benchmark interest rates. The odds of a rate cut in December also rose after U.S. inflation rose 0.2% in September from the previous month, the slowest pace in three months.
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