The PRISM Emerging Precious Metals Index fell 6.9% today as gold prices dropped sharply toward $4,500 an ounce, extending a losing streak to seven consecutive sessions — the longest since 2023. Every component in the index is in the red, reflecting broad-based pressure across gold, silver, and rare earth mining equities.
The index, which launched at $100.00 on January 2, 2025, currently stands at $251.70, representing a 151.7% gain since inception despite today’s sharp pullback.
What is driving the selloff
The catalyst is macroeconomic, not operational. Escalating conflict in the Middle East has pushed oil prices significantly higher, raising inflationary concerns that reduce the probability of near-term Federal Reserve rate cuts. On Wednesday, the Fed held rates steady and projected just one cut in 2026, with Chair Jerome Powell signaling that any reduction would depend on sustained progress on inflation.
Gold, which does not pay interest, faces direct headwinds in a higher-for-longer rate environment. When the opportunity cost of holding a non-yielding asset rises, institutional investors rotate out. That dynamic is playing out across the sector today.
Index movers
The steepest declines among index components are concentrated in smaller and mid-cap silver producers. Avino Silver and Gold Mines (ASM) leads losses at -14.31%, followed by NioCorp Developments (NB) at -11.12%, Endeavour Silver (EXK) at -9.87%, and Gold Royalty Corp (GROY) at -9.61%. Sibanye Stillwater (SBSW) is down 9.77%.
Among larger constituents, IAMGOLD (IAG) has declined 7.57%, SSR Mining (SSRM) is off 6.71%, and Hecla Mining (HL) has dropped 7.00% on volume of approximately 11.5 million shares. Coeur Mining (CDE) is down 6.18% on volume of 13.1 million shares, below its average of 23.9 million, suggesting institutional sellers are not yet fully capitulating.
Two index components remain below their January 2025 inception prices. Critical Metals Corp (CRML) is down 25.8% and New Found Gold Corp (NFGC) is down 47.9% since index launch, making them notable underperformers relative to the broader index.
Broader context
Today’s action mirrors gold’s decline through the summer of 2022, when Russia’s invasion of Ukraine triggered an energy price shock that rippled through commodity markets. The parallel is worth watching. In 2022, gold ultimately recovered as rate expectations shifted. Whether that playbook repeats will depend on how quickly oil prices stabilize and how the Fed responds.
Silver’s decline is more pronounced than gold’s today, with spot silver down approximately 13%. That divergence often signals risk-off sentiment rather than a fundamental reassessment of precious metals demand, as silver carries a larger industrial component that makes it more sensitive to growth concerns.
Index perspective
Despite today’s losses, the PRISM Emerging Precious Metals Index remains up 151.7% since inception on January 2, 2025. The top performers since launch include Ucore Rare Metals (UURAF) at +472.7%, Avino Silver and Gold Mines (ASM) at +467.4%, Idaho Strategic Resources (IDR) at +361.3%, and Vista Gold (VGZ) at +301.8%.
Today’s selloff, while sharp, reflects a sector responding to a well-defined macro catalyst rather than deteriorating fundamentals. Investors monitoring the space should watch the Fed commentary trajectory, oil price stabilization, and whether gold can hold support near $4,500 as key indicators for near-term direction.
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