Precious metals investors have dumped holdings aggressively over the past 10 days as gold and silver prices slid sharply. Within the last few hours alone, they have declined by approximately 3.5 per cent.
Traders unwound speculative long positions, treating precious metals more like risk assets than safe haven commodities during this period.
Escalating inflation fears, fuelled by surging oil prices from the U.S.-Iran conflict and potential disruptions in the Strait of Hormuz, prompted central banks including the Federal Reserve to maintain hawkish stances and delay rate cuts.
Gold posted its worst weekly loss in over a decade, dropping by over 10 per cent to trade around US$4,400 per ounce. Meanwhile, silver suffered even steeper declines, falling more than 15 per cent in the last week to hover near US$67 per ounce.
Geopolitical tensions failed to trigger traditional safe-haven buying. Instead, higher energy costs and sticky inflation expectations dominated market sentiment and triggered broad sell offs.
Mining stocks take major blows
Mining companies endured punishing declines as falling metal prices eroded profitability outlooks.
AngloGold Ashanti PLC (NYSE: AU) (FRA: HT3) shares plunged 37.4 per cent in March, erasing significant value from its market capitalization amid investor flight from gold exposure. Additionally, Pan American Silver Corp (TSE: PAAS) (NYSE: PAAS) (FRA: PA2) dropped 32.1 per cent over the same period, reflecting the heavier impact on silver-focused producers from the metal’s sharper retreat.
Moreover, Hecla Mining Co (NYSE: HL) (FRA: HCL) fell around 12 per cent in a single week, hit directly by collapsing silver values. The metal’s decline was compounded by rising operational costs from elevated oil prices and a stronger American dollar.
Other names like Newmont Corporation (TSE: NGT) (NYSE: NEM) (FRA: NMM) and Fresnillo plc (OTCMKTS: FNLPF) (FRA: FNL) each shed more than 26 per cent over the past month. This contributed to billions wiped from the broader mining sector as synchronized pressure across gold, silver and related commodities intensified the slump.
Read more: NevGold reports high-grade antimony-gold hits as Limo Butte resource estimate nears
Analyst sentiment is now mixed and cautious
Market observers have adopted a predominantly cautious tone for precious metals through the remainder of 2026.
Many Wall Street experts turned bearish in recent surveys, with a majority forecasting near-term further downside. Some analysts are warning of gold potentially descending to around US$4,000 if the Iran conflict prolongs.
In the latest Kitco News Weekly Gold Survey, Wall Street experts turned sharply bearish with 67 per cent of the 18 participating analysts forecasting further declines in the near term.
Consensus sentiment has pointed to sideways or downward pressure in the coming months unless geopolitical risks ease substantially or energy-driven inflation moderates. Taking profits now is a choice many are considering.
Kelvin Wong, senior market analyst at OANDA, warned that gold’s trajectory would hinge on the Fed’s guidance. He noted that if the central bank pencils in no cuts or fewer than expected due to the Middle East situation, precious metals could face prolonged pressure.
Nonetheless, several voices emphasize underlying resilience. Long-term fundamentals, including ongoing central bank gold purchases, geopolitical uncertainties and wealth diversification appeal, could support a recovery floor. Some believe the recent weakness is temporary and that many buyers could likely decide to re-enter in six to 12 months.
Read more: NevGold mobilizes drill on Limo Butte historical pads, eyes 2027 antimony production
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