Global mining stocks have dropped sharply as metal prices declined this week, driven by the strength of the U.S. dollar and disappointment in China’s latest stimulus package.
European mining giants, including Rio Tinto, Anglo-American, and Glencore, saw shares fall between 5% and 7% since last week following Donald Trump’s U.S. election win. The surge in the dollar has added downward pressure on metals like gold, silver, and copper—key commodities for major mining firms. The Pan-European Stoxx 600 index fell by 2%, led by losses in the Basic Resources Index, which dropped 3.72% on Tuesday.
Since Election Day, precious metals have seen marked price declines: gold futures on COMEX fell by about $105 (€99) per ounce, down 5%, while silver futures dropped by $2 (€1.9) per ounce, or 6%. Market analysts suggest Trump’s policies, including proposed tariffs, may spur inflation in the U.S., likely prompting the Federal Reserve to raise interest rates again, which has bolstered the dollar. U.S. 10-year Treasury yields have also risen to a four-month high as bond traders anticipate a more robust U.S. economy with higher interest rates.
Meanwhile, copper and iron ore prices have declined in recent trading sessions after China announced a 10 trillion yuan (€1.3 trillion) stimulus aimed at alleviating financing issues for local governments. Copper futures fell by 3.5% last Friday, while iron ore on the SGX exchange declined by 3.3% to just above $102 (€96) per metric ton, nearing the significant $100 (€94) level.
