By Sherry Qin


Chinese gold-mining stocks fell broadly after the precious metal plunged following President Trump's nomination of a new Federal Reserve chairman.

Shares of China's largest mining company, Zijin Mining Group, lost 5.8% and 5.0% in Shanghai and Hong Kong, respectively, early Monday. Shandong Gold-Mining's A shares fell by their daily limit of 10%, and Zijin Gold International H shares shed 4.4%.

The precious metal suffered a steep drop Friday after a furious rally in recent months, surpassing the $5,000-an-ounce milestone in January. Front-month gold futures plunged 11% to $4,713.90 a troy ounce, their steepest one-day decline since January 1980.

On Monday, spot gold extended declines following Friday's 9% drop and was last down 3.2% at $4,738.35 an ounce, according to ICE data.

Gold's plunge came as the dollar jumped after President Trump nominated former Federal Reserve governor Kevin Warsh to succeed Jerome Powell as chair of the central bank. Warsh has historically been more concerned with higher inflation than slower growth, easing Wall Street fears that the Fed would succumb to Trump's push for lower interest rates.

Markets had worried that the new candidate would be influenced by Trump and compromise the Fed's independence, driving a recent rally in gold.

"However, Warsh is considered the toughest on inflation among the candidates for the role, lessening the likelihood of a dramatic easing of monetary policy," ANZ analysts said in a note.


Write to Sherry Qin at sherry.qin@wsj.com


(END) Dow Jones Newswires

02-01-26 2215ET