AXMIN Inc (TSXV: AXM)
AXMIN Inc. (TSXV:AXM) is a Canadian-based exploration and development company with a strong focus on central and West Africa.
Barrick Gold (GOLD), Newmont Mining (NEM), Gold Fields (GFI) and AngloGold (AU) fell 4.6%, 2.6%, 6% and 5.1% respectively. This decline is particularly eye-catching. Despite the strong rise in the market index, the one-day plunge in gold prices is not surprising.
Over the past year, gold has risen 42% in total, becoming the preferred tool to hedge against market turmoil caused by the Trump administration’s tariff policy. Last night, Trump softened his extreme stance, and market concerns about the worsening trade war eased, and funds quickly withdrew from the gold market to risky assets.
On April 2, “Liberation Day”, President Trump announced that higher-than-expected tariffs would be imposed on many countries. Since then, frictions between China and the United States have continued to escalate, and investors are worried about trade wars, soaring prices and global turmoil. Trump’s criticism of Federal Reserve Chairman Powell’s remarks on Monday has further raised market doubts about the stability of US dollar assets.
Recently, there have been signs of easing: Trump made it clear that he would not fire Powell and hinted that the 145% tariff imposed on Chinese goods would be significantly reduced. As the third largest trading partner of the United States, China’s supply chain position in key areas such as electronics makes extreme tariffs likely to trigger an economic recession. Previously, such policy uncertainty even shook the safe haven status of US bonds. Abnormally, US bond yields have risen in tandem with the stock market recently.
It is worth noting that Barrick Gold has recently sold Alaska gold mining projects and plans to divest assets in Canada and Ivory Coast. Does this high-level cashing out indicate that the price of gold has peaked in stages? The answer depends on the progress of trade negotiations and the change in investors’ preferences for gold/US bonds. Whether the current gold price correction is a trend reversal or a halftime break still needs to observe the policy direction and the evolution of market sentiment.
