The Resolute Mining Limited (ASX: RSG) share price fell 0.8% on Friday to close the week at a new 52-week low. The current 61 ents per share valuation is the Aussie gold miner's lowest since April 2016.
Why is the Resolute share price under pressure?
Friday's trade saw the continuation of a downward trend for the Resolute Mining share price in 2021.
Shares in the Aussie gold miner are down 27.4% this year with a current market capitalisation of $673.4 million. It's not the only ASX gold miner struggling to arrest a share price slide right now.
Gold prices are under pressure and have fallen sharply in 2021. A rising US dollar and increasing long-term bond yields have seen investors turn away from gold as a safe haven asset.
It's also coincided with optimism around the world in the fight against the coronavirus pandemic.
Vaccine rollouts are underway in many nations, which is providing hope of a continued move towards normality. There are also growing hopes of an economic recovery with the help of record stimulus packages across the world.
That has seen investors rotate away from gold, with increased selling driving down prices. The Resolute Mining share price has followed suit, alongside other ASX gold miners, and slumped to a new 52-week low.
A lower gold price could put pressure on Resolute's revenue and profitability numbers in the short- to medium-term.
Foolish takeaway
The Resolute Mining share price has been under pressure in 2021 and is trading at a new 52-week low. A stronger US dollar has provided hawkish investors with an alternative to the precious metal.
Hopes of a sustained economic recovery and a continued record stimulus push, particularly in the US, have also seen investors rotate out of gold.
That has put gold prices (and the Resolute Mining share price) under pressure to start the year.
