Shares in Fresnillo PLC (LSE:FRES) and Endeavour Mining slipped on Friday as the price of gold retreated further from last month’s highs.
Spot gold dropped 2.3% to $3,162.90 an ounce, taking its decline to 7.5% since peaking on 21 April at the height of investor anxiety over President Trump’s tariff threats.
At the time, safe-haven demand had surged as markets priced in a potential trade war between the United States and China. Those fears have since eased, albeit not entirely, following a deal last weekend that saw Washington agree to a 90-day pause on new tariffs covering Chinese exports.
While that has taken some of the heat out of the bullion market, it has also weighed on gold miners, whose shares tend to track the metal’s spot price. Fresnillo, the Mexican precious metals producer, fell 2.4% in afternoon trading, while Endeavour Mining, which focuses on assets in West Africa, lost 2%.
Gold’s recent rally was driven more by geopolitics than fundamentals, so any signs of detente risk taking the shine off.
Analysts said the 90-day reprieve had tempered the market’s worst fears, although uncertainty remains over whether a more permanent resolution is possible before the truce expires.
Base metals, meanwhile, have shown greater resilience in the face of trade-related uncertainty.
According to Citi, the US–China tariff reprieve is likely to delay downside pressure on prices until the third quarter of 2025.
The bank expects a broadly neutral outlook through the remainder of the second quarter, supported by the potential frontloading of demand and continued strength in global manufacturing.
“Physical metal market resilience can persist for the rest of the quarter,” the bank said, adding that the tariff pause extends the window for stronger goods orders.
However, Citi warned that headwinds remain. It maintained a bearish short-term view across the complex, anticipating that growth will begin to slow once the impact of frontloaded demand fades.
Copper is seen as particularly exposed due to arbitrage dynamics in the US and elevated speculative positioning.
The risk, according to Citi, is that consumption growth will come under more visible pressure as the effects of the tariff truce wear off later in the year.
Shares in Antofagasta Gold (TSX-V:AN), Glencore PLC (LSE:GLEN) and Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) were all on offer in early afternoon trading.