Gold mining stocks surged on Monday, with Iamgold up 8.9%, Gold Fields rising 9.5%, and Fortuna Mining jumping 12.1%. The rally followed a 2.7% increase in gold prices driven by mounting geopolitical tensions over the weekend.
Two major events sparked investor concerns:
– President Trump accused China of violating trade agreements and announced doubled tariffs on steel and aluminum from 25% to 50%.
– Additionally, Ukraine executed “Operation Spiderweb,” a drone attack that reportedly destroyed 13 Russian long-range bombers.
These developments pushed investors toward gold as a traditional safe-haven asset. When global uncertainty rises—whether from trade wars or military conflicts—gold typically benefits as investors seek alternatives to dollar-based assets. The combination of renewed U.S.-China trade tensions and escalating Ukraine-Russia hostilities created perfect conditions for gold’s rally, directly benefiting mining companies whose revenues are tied to gold prices.