Gold miners’ stocks, 2025’s standout performers, faced a sharp reversal this week as investor appetite for safe havens cooled following the U.S.-China trade truce, raising fresh doubts about the sustainability of the sector’s explosive rally.
The VanEck Gold Miners ETF (NYSE:GDX)—a widely tracked proxy for gold mining stocks—plunged 9.6% over three sessions, marking its worst three-day performance since April 2022.
The move was amplified by a 4.4% drop in gold prices, which now sit 9.2% below the all-time high of $3,500 per ounce reached on April 22.
Losses were broad-based within the GDX components. Newmont Corp. (NYSE:NEM), its largest holding, dropped 10% in just three days. Similar losses were recorded in Barrick Gold Corp. (NYSE:GOLD) and Agnico Eagle Mines Ltd. (NYSE:AEM).
The abrupt reversal comes as risk appetite surges globally, diminishing gold’s appeal. The May 12 announcement of a 90-day U.S.-China tariff rollback helped lift equities and risk assets, reducing investor hedges in gold.
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