Asian gold stocks slide as bullion falls, Sumitomo Metal Mining drops 11%

Asian gold mining stocks experienced a sharp decline on Wednesday as investors unwound precious-metals positions due to gold's latest decrease. Sumitomo Metal Mining (TYO:5713) saw the largest losses, with its shares plummeting 11.15% to 10,080 yen. Other Australian-listed miners, such as Westgold Resources (ASX:WGX) and Northern Star Resources (ASX:NST), also suffered significant drops, falling 6.19% and 5.32%, respectively.

Additional Australian-listed miners, including Perseus Mining, Ramelius Resources, Genesis Minerals, Regis Resources, and Evolution Mining, reported declines ranging from 2.95% to 3.63%.

The sell-off followed a decline in spot gold prices, which hit a three-week low and remained below its 200-day moving average. Rising oil prices, higher Treasury yields, and a stronger dollar have heightened expectations of the Federal Reserve raising interest rates, negatively impacting non-yielding gold. Gold had fallen for four consecutive days, extending its retreat from last week's record levels.

This decline in gold quickly translated to gold equities, which saw substantial losses, particularly in Australia where gold miners were among the worst-performing stocks on the S&P/ASX 200.