Sandstorm Gold Ltd (SAND) saw its stock plummet 5.33% in pre-market trading on Monday, as gold prices and gold mining stocks faced significant pressure following positive developments in US-China trade relations.
The sharp decline in Sandstorm Gold's share price aligns with a broader selloff in the gold sector. Spot gold fell as much as 3% to below $3,220 an ounce in early Asian trading, while other gold mining stocks experienced similar downturns. The retreat in gold prices and related equities comes as the precious metal's safe-haven appeal diminishes amid signs of easing global trade tensions.
The US and China reported "substantial progress" after two days of trade talks in Switzerland, with both nations agreeing to reduce tariffs on each other's goods. This development has boosted risk appetite among investors, leading to a shift away from safe-haven assets like gold. As a result, gold mining companies, including Sandstorm Gold, are facing downward pressure as the market reassesses the near-term outlook for the precious metal.
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