Gold miners' bull run squeezed as prices plummet and energy costs soar
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Gold's recent move lower has second-order effects for the prospects of the firms that dig the metal out of the ground.
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In this article GDX Follow your favorite stocks CREATE FREE ACCOUNT miner looks across the largest open pit gold mine in Australia called the Fimiston Open Pit, also known as the Super Pit, in the gold-mining town of Kalgoorlie, located around 500 kilometres east of Perth. David Gray | Reuters Gold price fell sharply on Monday morning as investors continued to ditch exposure to the precious yellow metal, which is having its status as a safe-haven trade tested amid the ongoing war in Iran. The recent move lower inevitably has second-order effects on miners, whose market values soared before the war as gold prices skyrocketed. Mining companies are among the most volatile stocks, typically acting as a leveraged bet on the gold price, rising during a commodities bull run and falling further during a sell-off. Since the war, the price of gold has fallen, lowering miners' revenues, and the oil and gas supply shock has boosted energy prices, raising their costs. Before the conflict, they had enjoyed remarkable gains as the gold price soared to all-time highs of over $5,500 per ounce. The gold spot price has fallen by around 25% from its peak at the end of January and was last seen trading at $4,250 as of 6:05 a.m. E.T. on Monday. The VanEck Gold Miners ETF rose almost 200% in 2025, but has since shed some of those gains. The fund has dropped 27% year-to-date and is showing little sign of recovery as the U.S. and Israel's war against Iran intensifies. How the price of the VanEck Gold Miners ETF compares to the gold spot price through 2026 so far. The outlook for miners has changed significantly over the past couple of weeks, with market volatility squeezing margins at both ends. "It is interesting to see resources sector reactions on both an energy supply shock and geopolitical risk event," said Rob Stein, head of resources research at Macquarie Capital. "The combination of the two with increased uncertainty is potentially driving change at the asset allocation level, with ...
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