Gold Mining Stocks Underperform Despite Gold’s Rally Toward $4,000

Gold mining equities slumped in pre-market trading even as spot Gold prices surged to a record $3,871 per ounce, approaching the psychologically significant $4,000 threshold. Barrick Gold (B) led declines with a 2% drop, followed by Newmont (NEM) at 1.8% and Kinross Gold (KGC) at 2.3%.

The divergence between physical metal and miner performance highlights growing market anxiety. "Gold has transitioned from hedge to headline act," said SPI Asset Management's Stephen Innes. "Its movement now reflects political and policy fears more than commodity fundamentals."

Central bank accumulation and geopolitical tensions have propelled a 50% year-to-date gold price appreciation. AJ Bell's Russ Mould notes: "The precious metal's doubling in two years reveals DEEP structural concerns about developed world debt burdens."