Equinox Gold Corp. (EQX) saw its stock plummet 5.28% in a 24-hour period, as the gold market reacted to positive developments in US-China trade negotiations. The significant drop came as gold's status as a safe-haven asset was challenged by easing geopolitical tensions and progress in trade talks between the world's two largest economies.

Gold prices fell as much as 1.8% in early Asian trading, reaching around $3,265 an ounce. This decline followed reports of "substantial progress" in discussions between the US and China during two days of talks in Switzerland. The strengthening dollar, making gold more expensive for most buyers, further contributed to the precious metal's downward movement. Despite the current dip, some analysts, like Robert Rennie from Westpac Banking Corp., suggest that gold prices below $3,200 should find strong support, with potential for future record highs.

The impact of falling gold prices was felt across the mining sector, with several major gold stocks experiencing significant drops in overnight trading. Companies such as Harmony Gold and Gold Fields saw declines of 6%, while others like Agnico Eagle Mines, Newmont Mining, Kinross, and Barrick Mining also faced losses ranging from 2% to 4%. As a gold mining company, Equinox Gold Corp.'s sharp decline aligns with this broader industry trend, reflecting investors' shifting sentiment in response to the changing geopolitical and economic landscape.