S&P/ASX 200 Index (ASX: XJO) gold stocks are getting hammered today as the gold price takes a steep tumble.
At the time of writing, bullion is trading for US$4,067 per ounce, down from the near-record high of US$4,356 that the same ounce was trading for yesterday.
This sees the gold price down 6.6%, which marks its largest fall in more than 12 years. And it sees the S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller miners outside of ASX 200 gold stocks – down a painful 9.5% today.
ASX silver shares are also feeling the pressure today, with silver prices plunging by 8.7% overnight. Silver is currently trading for US$48 per ounce, down from last week's record highs of more than US$54 per ounce.
There's no single driver for the plunge in precious metals prices. But with both gold and silver having rocketed to a series of new all-time highs this year, it looks like investors around the globe are taking some profits.
And with early signs emerging that the US and China may be able to reach some form of trade agreement, gold's haven demand may also be slightly reduced.
Despite the historic pullback, the gold price remains up 48.0% since this time last year.
Image source: Getty Images
What are the experts saying about the plunging gold price?
Commenting on the exceptionally large fall in the gold price, Alexander Stahel, a resources investor in Switzerland, said (quoted by Bloomberg), "A drop of more than 5% is rare. In theory, it would be once in hundreds of thousands of trading days."
Ole Hansen, commodities strategist at Saxo Bank, noted:
In the last couple of trading sessions traders have increasingly been looking over their shoulders, as concerns about a correction and consolidation have arisen. It's during corrections that a market's true strength is revealed, and this time should be no different, with an underlying bid likely keeping any pullback limited.
Helen Amos, a commodity analyst at BMO Capital Markets, added, "When you've got that much money quickly coming into the space, it's only natural to expect some of that money to leave as well when people have made a quick return."
Looking ahead, Amos remains optimistic about the outlook for the gold price. She noted:
We like the gold story; we think the gold story is fundamentally a good one. We're forecasting prices around US$4,500 next year. But no prices like going a straight line. pullbacks are kind of healthy, and we think this is inevitable that we are getting a little bit of volatility along the way.
ASX 200 gold stocks down but far from out
On big down days, like we're seeing with the gold price today, it's important not to lose sight of the bigger picture.
While the ASX All Ords Gold Index is down 9.5% today, it remains up 85.9% in 2025.
As for some of the top ASX 200 gold stocks:
- Northern Star Resources Ltd (ASX: NST) shares are down 10.9% today and up 49.1% year to date
- Newmont Corp (ASX: NEM) shares are down 10.8% today and up 115.1% year to date
- Ramelius Resources Ltd(ASX: RMS) shares are down 11.0% today and up 65.4% year to date
- Evolution Mining Ltd (ASX: EVN) shares are down 10.4% today and up 114.5% year to date
- Perseus Mining Ltd (ASX: PRU) shares are down 10.1% today and up 76.4% year to date
Stay tuned!
