Gold, Silver Slump Hits Miners After Record Run

December 29, 2025 at 19:27 UTC

4 min read

Gold and silver price drop visualization with mining stocks decline after record highs

Key Points

Silver and gold fell sharply Monday after silver hit a record above $80 an ounce overnight.
Major gold miners including Newmont, Barrick, Agnico Eagle and AngloGold saw shares tumble.
Analysts cite profit-taking and possible margin-driven ‘flash crash’ dynamics in precious metals.
Despite the sell-off, several miners still carry upbeat growth forecasts and higher price targets.

Metals Reversal After Record Silver Price

Precious metals markets reversed sharply on Monday after a powerful rally through 2025. Silver, which started the year near $20 an ounce and had more than tripled in price, briefly traded north of $80 an ounce overnight before dropping dramatically as traders took profits. Across several reports citing CNBC data, silver fell as low as $70.25 an ounce and was recently down between about 6.9% and 7.9%, with spot prices quoted around $71 to $71.9 per ounce. Gold, up roughly 65% year to date and trading near record territory, also retreated, with prices down about 4.3% to 4.5% in intraday trading, in a range around $4,349 to $4,358 per ounce. Commentators described the move as starting with profit-taking after “fabulous” gains in metals that are widely used as inflation hedges, and suggested that selling pressure may be intensifying as investors who bought on margin face margin calls, potentially turning the pullback into a “flash crash.”

Gold Miners Slide in Tandem With Metal Prices

The sudden metals sell-off triggered broad declines across major gold and silver miners. Newmont Mining stock fell 6.9% through mid-morning, even as it remained up 185% year to date and traded at about 16 times earnings with a roughly 1% dividend yield. Barrick Mining shares dropped 4.1%, while Agnico Eagle Mines slid 5.7%. AngloGold Ashanti declined 6.5%, and Gold Fields tumbled about 6.6%. The pullback came after a period of strong equity performance: Gold Fields shares had soared more than 250% year to date and recently pulled back below a technical buy point of $47.18, while AngloGold Ashanti stock had surged 318.7% over the past year and hit a 52‑week high of $91.65 on Friday before easing. Agnico Eagle had gained about 134.3% since the start of the year, outpacing the broader basic materials sector but slightly trailing the average return of the Mining – Gold industry, which rose 162.3%.

Company Fundamentals and Analyst Views Remain Supportive

Despite Monday’s price action, several miners continue to report improving fundamentals and attract positive analyst attention. AngloGold Ashanti’s third-quarter 2025 gold production rose 17% year over year to 768,000 ounces, helped by the Sukari mine acquisition and strong output from assets including Obuasi, Kibali, Geita and Cuiabá. Higher volumes and prices lifted adjusted EBITDA 9%, gold revenue 61.9% to $2.37 billion, and earnings per share 136% to $1.32. The company generated record free cash flow of $920 million in the quarter and ended with $3.9 billion in liquidity. Analysts covering AngloGold expect earnings to grow 73% next year, and multiple firms, including Roth MKM, Citi, RBC Capital and JPMorgan, have recently raised price targets on the stock. Newmont has also drawn favorable coverage: Raymond James increased its price target to $111 and maintained an Outperform rating, citing strong gold exposure, cash flow and balance sheet flexibility. Separate research highlighted Newmont’s recent stronger-than-expected third-quarter results and strategic portfolio moves.

Valuations and Growth Expectations Across the Sector

Valuation metrics and growth forecasts for several miners remain elevated even after the sell-off. Commentary on Gold Fields noted that the stock trades at about 21 times trailing earnings, with analysts projecting earnings growth above 50% annually over the next five years and a dividend yield around 1.3%. Barrick Mining was also cited at roughly 21 times trailing earnings, with analysts forecasting 50% annual earnings growth over the next five years and a dividend yield near 1.5%. Agnico Eagle, while priced at more than 26 times GAAP earnings and about 25 times free cash flow, is expected by analysts to grow earnings nearly 37% per year over the next five years and pays a dividend yield of about 1%. AngloGold Ashanti shares were described as among the cheapest publicly traded gold and silver stocks at 20.5 times trailing earnings, with a dividend yield of 2.2%. Across these names, commentary emphasized that the sharp one-day declines were occurring against a backdrop of strong year-to-date gains, rising gold prices and, in many cases, upgraded analyst targets and robust earnings outlooks.

Key Takeaways

Monday’s sharp drop in gold and silver prices followed an extended rally that had already delivered triple-digit percentage gains in many mining stocks.
The sell-off in miners such as Newmont, Barrick, Agnico Eagle, AngloGold and Gold Fields appears closely tied to profit-taking and margin dynamics in the metals market.
Despite price volatility, several leading miners are reporting stronger production, cash flow and earnings, and continue to receive higher analyst price targets and growth forecasts.