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Highlights

  • .AXGD index drops 6.3% to 11,152.2 points, its lowest since April 10.

  • Sell-off driven by reduced investor demand for gold following U.S.-China tariff de-escalation.

  • Major miners like Bellevue Gold, Evolution Mining, and Northern Star among top decliners.

Australian gold stocks suffered sharp losses on Monday, with the S&P/ASX All Ordinaries Gold Index (XGD) plunging as much as 6.3% to 11,152.2 points, marking its lowest level in over a month. The decline comes amid easing geopolitical tensions, particularly the announcement of a temporary tariff truce between the United States and China, which led investors to shift away from traditional safe-haven assets like gold.

The gold price pullback hit some of Australia’s biggest producers hard. Bellevue Gold Ltd (ASX:BGL) dropped 6.8%, while Evolution Mining Ltd (ASX:EVN) lost 6.2%, placing both among the top 10 worst performers on the ASX 200 benchmark (XJO) for the session.

Northern Star Resources Ltd (ASX:NST), another heavyweight in the gold sector, also saw significant weakness, declining 5.7% on the day.

Despite the steep fall, the sector remains robust on a year-to-date basis. The XGD index is still up 32.6% in 2025.

Tariff Relief Dampens Gold Appeal

Gold, a traditional hedge against uncertainty and inflation, saw its appeal wane after news broke of a temporary agreement between Washington and Beijing to pause further tariff increases. The move signaled a thaw in trade tensions and triggered a broad risk-on sentiment across global markets, prompting investors to pivot towards equities and other growth-focused assets.