GLOBAL gold mining stocks have swung into negative territory for 2026 as escalating conflict in the Middle East pushes oil prices higher, fanning inflation fears and dimming prospects for interest rate cuts, said Bloomberg News.
The NYSE Arca Gold Miners Index fell 6.6% on Thursday to its lowest level since December, leaving it down roughly 1.9% for the year after gaining as much as 35% on 2 March, the first trading session following US and Israeli strikes on Iran, said the newswire.
Gold itself has declined about 12% since the war began, extending a losing run to seven consecutive sessions — its longest such streak since October 2023.
The concern gripping investors is a potential double blow: weaker bullion prices coinciding with rising energy and input costs, said Bloomberg.
“For now, investor attention is on margins and the potential double whammy of lower gold prices and higher energy and consumable costs,” Christopher Lafemina, analyst at Jefferies told the newswire. “In a prolonged conflict scenario, it’s possible to see more pressure on gold from higher rate expectations and a stronger US dollar,” he said.
Traders have abandoned expectations of Federal Reserve rate cuts this year, with some now hedging for a possible hike.
Gold, which offers no yield, performs poorly in higher-rate environments. A strengthening dollar — the Bloomberg Dollar Spot Index has gained 1.5% in March — compounds the pressure by making bullion costlier for buyers in other currencies.
The sell-off is a sharp reversal after a stellar 2025, when Newmont, Agnico Eagle and Barrick Mining each rose more than 115%. Bullion itself gained 65% last year.
“When volatility hits, the market sells anything liquid, and miners are liquid,” said Matthew Tuttle, chief executive of Tuttle Capital Management. “Add the fear that oil stays high, and you get a fast, ugly unwind — even in companies that are still printing cash.”
Analysts nonetheless note that bullion prices have surged more than 120% since end-2023, providing a substantial cushion for major producers.
