Gold Prices Weaken, Mining Stocks Pressured by Middle East Conflict

JAKARTA - Gold prices weakened in Monday morning trading (23/3/2026), as investors continued to reduce their exposure to the precious metal. The decline in gold prices has further impacted shares of mining companies. This sector had previously recorded a significant surge when gold prices rocketed before the outbreak of the conflict in the Middle East. When gold prices rise, mining stocks typically jump more sharply. Conversely, during sell-offs, their declines tend to be deeper. Since the Iran-Israel-US conflict unfolded, gold prices have instead experienced a downturn, affecting mining companies’ revenues. Citing CNBC, before the conflict, gold prices had hit a record high above $5,500 per ounce. However, at the start of Monday’s trading, the spot gold price fell around 1.3% to $4,432.09 per ounce. The performance of gold mining stock-based funds, such as the VanEck Gold Miners ETF, has also come under pressure. The outlook for mining companies has changed significantly in recent weeks, with market volatility squeezing margins from both sides. “It’s interesting to see how the resources sector responds to energy supply shocks and geopolitical risks simultaneously,” said Rob Stein, Head of Resources Sector Research at Macquarie Capital. “The combination of both with rising uncertainty could drive changes in asset allocation, where the previous rally becomes an opportunity to take profits, especially in small-cap stocks,” he added.