Materials stocks rise despite gold plunge.

Materials producers rose after strong earnings offset a slump in precious metals. Gold futures fell 5.7% to $4087.70 an ounce, while gold miners such as Barrick Gold and Newmont lost over 8%. Steel Dynamics surged on increased earnings and volumes, while Cleveland-Cliffs gave back gains after analysts questioned the justification for its recent surge.

Materials producers experienced a mixed day on September 12, 2025, as strong earnings reports offset a significant drop in precious metals. Gold futures fell 5.7% to $4087.70 per ounce, marking one of the steepest single-day declines in recent years Why is gold down today? Possible reasons for the price drop^[1]. This drop was largely attributed to profit-taking following the metal’s rapid surge and optimism over US-China trade talks Why is gold down today? Possible reasons for the price drop^[1].

Gold miners such as Barrick Gold and Newmont also suffered substantial losses, with Barrick Gold falling by over 8% and Newmont dropping by more than 6% Why is gold down today? Possible reasons for the price drop^[1]. The decline in gold prices was exacerbated by a stronger US dollar and reduced demand for gold as a safe-haven asset due to improved trade prospects between the US and China Why is gold down today? Possible reasons for the price drop^[1].

Despite the slump in precious metals, steel producers saw significant gains. Steel Dynamics, for instance, surged on increased earnings and volumes, reflecting the robust demand for steel in the domestic market Cleveland-Cliffs Stock Rockets on Tariffs and Rare-Earth Push – But Caution Remains^[2]. Cleveland-Cliffs, another major steel producer, initially saw its stock rise sharply after reporting strong Q3 earnings and announcing strategic initiatives, including exploration for rare-earth elements Cleveland-Cliffs Stock Rockets on Tariffs and Rare-Earth Push – But Caution Remains^[2]. However, the stock gave back some of its gains as analysts questioned the justification for its recent surge, highlighting concerns over the company’s high debt levels and uncertainty around trade policies Cleveland-Cliffs Stock Rockets on Tariffs and Rare-Earth Push – But Caution Remains^[2].

Cleveland-Cliffs reported Q3 revenue of about $4.73 billion, up from $4.57 billion a year ago, and an adjusted loss of ~$0.45 per share, slightly better than Wall Street expectations Cleveland-Cliffs Stock Rockets on Tariffs and Rare-Earth Push – But Caution Remains^[2]. The company’s CEO, Lourenco Goncalves, credited new US steel tariffs for reviving domestic demand, particularly in the auto steel sector Cleveland-Cliffs Stock Rockets on Tariffs and Rare-Earth Push – But Caution Remains^[2]. Additionally, Cliffs announced plans to explore its Michigan and Minnesota iron-ore mines for rare-earth elements, aligning with the broader national strategy for critical material independence Cleveland-Cliffs Stock Rockets on Tariffs and Rare-Earth Push – But Caution Remains^[2].

Overall, the mixed performance of materials producers on September 12, 2025, highlights the complex interplay between various factors affecting the metals markets, including trade policies, economic optimism, and geopolitical developments.