Mining stocks drag on FTSE 100 as gold slides and Iran peace talks stall Proactive uses images sourced from Shutterstock
FTSE 100 mining stocks are taking a beating on Friday morning, with Fresnillo PLC (LSE:FRES), Antofagasta PLC (LSE:ANTO), Anglo American PLC (LSE:AAL) and Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF, FRA:6E2) among the index’s biggest fallers as gold slipped 1.4% to $4,586.42 an ounce.
The trigger is a sharp reversal in sentiment around the US-Iran conflict, after President Trump dismissed Tehran’s latest peace proposal as a “piece of garbage” and warned the ceasefire was on “life support.” That has sent the relief rally that had been building across metals and miners sharply into reverse.
The connection between Iran and gold prices is more complicated than it might first appear. When Iran closed the Strait of Hormuz earlier this year, oil surged past $100 a barrel, stoking inflation and forcing the Federal Reserve into a higher-for-longer stance on interest rates. Since gold offers no yield, rising rate expectations are toxic for the metal – and it duly sold off, losing around 25% from its January peak before recovering to current levels.
With the peace deal now stalling again, traders are pricing in more of the same. Global brokerages have already trimmed their rate cut forecasts for 2026, with some now pencilling in no cuts at all.
Fresnillo and Endeavour, as pure-play precious metals producers, are bearing the brunt of the gold price decline. Antofagasta and Anglo American are also under pressure as copper pulls back from recent highs, with the broader risk-off mood doing little to help sentiment across the sector.