Asian gold mining stocks fell sharply on Wednesday as investors continued to unwind positions in precious metals following the latest decline in gold prices. Sumitomo Metal Mining was among the biggest losers, plunging more than 11%.
Shares of Sumitomo Metal Mining (TYO:5713) dropped 11.15% to 10,080 yen. Westgold Resources (ASX:WGX) fell 6.19% to A$6.06, while Northern Star Resources (ASX:NST) declined 5.32% to A$22.43.
Other Australian-listed gold miners also came under heavy selling pressure. Perseus Mining fell 3.63%, Ramelius Resources declined 3.46%, Genesis Minerals dropped 3.36%, Regis Resources lost 3.44%, and Evolution Mining slipped 2.95%.
In Hong Kong, Lingbao Gold fell 2.31%, Zijin Gold International declined 2.71%, and Zhaojin Mining Industry dropped 2.89%. Meanwhile, Zijin Mining and Shandong Gold fell 2.75% and 1.79%, respectively.
Gold Decline Weighs on Mining Stocks
The sell-off in gold mining stocks followed another decline in bullion prices. Spot gold fell to its lowest level in more than three weeks on Wednesday and remained below its 200-day moving average, adding to the bearish pressure on precious-metal equities.
Higher oil prices, rising U.S. Treasury yields, and a stronger U.S. dollar have fueled expectations that the Federal Reserve could raise interest rates. Higher interest rates typically weigh on non-yielding assets such as gold by increasing the opportunity cost of holding bullion.
Gold has now declined for four consecutive sessions, extending its retreat from last week's record high. The sharp reversal has quickly spilled over into gold mining stocks, which had previously benefited significantly from the strong rally in bullion prices over recent months.
Australian Gold Miners Under Pressure
The weakness was particularly pronounced in Australia, where gold miners ranked among the worst-performing stocks on the benchmark S&P/ASX 200 index.
Pantoro Gold, Westgold Resources, and Kingsgate Consolidated each declined by roughly 6% to 7.5%, highlighting the broad-based selling pressure across the sector.
The broader Australian market also weakened, with the S&P/ASX 200 falling around 1.1%. Major Asian equity benchmarks posted deeper losses as rising oil prices and higher bond yields intensified risk-off sentiment across regional markets.
With gold prices remaining under pressure, investors are closely watching developments in U.S. monetary policy, Treasury yields, the dollar, and commodity markets for further clues about the outlook for gold and gold mining stocks.