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Highlights

  • Gold sub-index (.AXGD) drops 5.6% from record high, breaking a seven-session winning streak.

  • U.S.-China trade optimism and U.S. dollar trigger gold price decline of over 1%.

  • Shares of Northern Star and Evolution Mining tumble 5.0% and 7.6%, respectively.

Australian gold stocks experienced a sharp pullback on Tuesday, ending the winning streak as global sentiment shifted towards equities and away from safe-haven assets like gold.

The S&P/ASX All Ordinaries Gold Index (XGD) slumped 5.6%, erasing its record-high gains from the previous session and falling to its lowest level in a week. This marks a significant break in momentum after seven consecutive sessions of gains driven by surging gold prices and risk-off market sentiment.

Gold Prices Retreat on U.S.-China Trade Hopes

The retreat in gold stocks follows a decline in global gold prices overnight, which fell more than 1%. The move was sparked by remarks from U.S. Treasury Secretary Scott Bessent, who suggested signs of a potential thaw in trade relations between the U.S. and China. His comments boosted optimism among equity investors, prompting a risk-on shift and strengthening the U.S. dollar, both of which typically act as headwinds for gold.

The greenback made gold more expensive for holders of other currencies, leading to a broader sell-off in precious metals and gold-related equities.

Top Miners Among Worst Hit

Major gold miners bore the brunt of the sell-off. Northern Star Resources (ASX:NST) saw its shares fall 5.0%, while Evolution Mining (ASX:EVN) plunged 7.6%, with both stocks dropping to their lowest levels in a week.

These declines come despite the impressive year-to-date performance of gold equities. As of the previous close, the AXGD sub-index had surged 54.9% in 2025, significantly outperforming the benchmark ASX 200 index (.AXJO), which is down 4.2% year-to-date.