Gold miners plunge as bullion suffers worst drop since 1980
Newmont and Barrick shares tumble as Fed Chair speculation drives 9% gold price collapse
Gold mining stocks suffered their steepest decline in decades on Friday as gold prices experienced their worst single-day drop since 1980, wiping out approximately $3.4 trillion from the value of above-ground precious metals in a dramatic reversal from record highs.
Global spot gold prices fell 9.02% to $4,891.72 per ounce on January 30, after reaching a record high of $5,594.82 earlier in the week, representing a pullback of more than 8.7%. The selloff was even more severe in India, where gold collapsed 7.65%, or ₹14,000 per 10 grams, falling below the ₹5,000 mark. Silver experienced an even sharper decline, plunging over 15-17% in its worst fall in 15 years.
The precipitous drop caught gold mining companies in its wake. Newmont Corporation, the world's largest gold producer, tumbled 11.5% to $112.35, after reaching an all-time high closing price of $131.95 just two days earlier. Barrick Gold Corporation fell 3% to $51.85, retreating from its own record high of $53.99 on January 28. Despite the sharp single-day declines, both stocks had delivered extraordinary returns over the past year—Newmont had gained 200.7% and Barrick approximately 160% leading into 2026, following gold's roughly 65% surge in 2025.
The catalyst for the historic selloff was a combination of factors, primarily centered on speculation surrounding the next Federal Reserve Chair. President Donald Trump's expected nomination of Kevin Warsh, considered an "inflation hawk," led market participants to anticipate tighter monetary policy. This perception bolstered the U.S. dollar and triggered a rotation out of traditional safe-haven assets like gold.
"The sharp decline in gold and gold mining stocks on January 30, 2026, marks a significant reversal after a period of strong performance driven by geopolitical uncertainties," according to market analysis from Goldinvest. "Some analysts view this as a market correction rather than a long-term trend reversal, given ongoing global uncertainties."
Profit-taking also played a significant role, as investors moved to lock in substantial gains after gold's unprecedented rally. The broader market environment added further pressure, with a significant slump in major U.S. AI and technology stocks contributing to risk-off sentiment across multiple asset classes.
Analyst sentiment remains largely bullish on the mining sector despite the volatility. Newmont maintains an analyst target price of $121.80, with 17 analysts rating it a buy or strong buy, compared to just one sell rating. Barrick Gold carries a target price of $41.75, with three buy ratings versus a single hold rating.
The dramatic price action highlights the volatile nature of commodity markets following historic runs. For gold miners specifically, the leverage to gold prices works both ways—magnifying gains during rallies but amplifying losses during corrections. Both Newmont and Barrick had been riding high on gold's surge into record territory, with Newmont's market capitalization reaching $139.5 billion and Barrick's climbing to $773 million before the pullback.