Agnico Eagle Mines Plummets 4.3% Amid Volatile Gold Sector Shifts

Summary
• AEM trades at $160.43, down 4.32% from $167.67
• Intraday range: $160.00–$169.61, with 10.2M shares traded
• Sector leader Newmont (NEM) also down 5.24%

Aggressive selling pressure has pushed Agnico Eagle Mines to a sharp intraday decline, with the stock trading near its session low. The move coincides with a broader selloff in the gold sector, driven by shifting macroeconomic expectations and mixed institutional activity. With the 52-week high at $187.50 now distant, investors are recalibrating positions amid heightened volatility.

Mixed Institutional Activity and Elevated Volatility Drive Sharp Correction
Agnico Eagle Mines' 4.3% intraday drop reflects a confluence of factors: a recent 15.4% price target increase to $191.90 failed to offset aggressive selling by institutional players. Over the past week, major funds including Portside Wealth Group, KBC Group, and Waratah Capital have trimmed or exited positions, collectively offloading over 180,000 shares. Meanwhile, the gold sector faces headwinds as Fed rate cut expectations wane, with gold prices retreating 3% on the same day. AEM's technical profile—trading below its 200-day MA of $129.01—amplifies bearish momentum.

Gold Sector Under Pressure as NEM Slides 5.2%
The gold sector is broadly underperforming, with Newmont (NEM) down 5.24% and Kinross (KGC) falling 4.91%. AEM's 4.3% decline aligns with sector dynamics but lags peers like Franco-Nevada (FNV, -3.72%) and Wheaton (WPM, -4.16%). The sector's underperformance reflects reduced speculative positioning as investors reassess gold's role in a higher-rate environment. AEM's premium to the S&P/TSX Composite (up 106.79% YTD vs. 20.97%) highlights its speculative nature.

Bearish Options Play and Key Support Levels to Watch
• 200-day MA: $129.01 (far below current price)
• RSI: 56.47 (neutral territory)
• MACD: 1.19 (bullish divergence) vs. signal line 0.83
• Bollinger Bands: $153.23–$173.16 (current price near lower band)

Technical indicators suggest short-term bearish momentum despite a long-term bullish trend. Key support levels at $163.19 (30D MA) and $116.79 (200D MA) could dictate near-term direction. For options traders, two contracts stand out:

• AEM20251128P155 (Put):
- Strike: $155, Expiry: 11/28
- IV: 39.56% (moderate)
- Delta: -0.2759 (moderate sensitivity)
- Theta: -0.0206 (slow time decay)
- Gamma: 0.0335 (high sensitivity to price moves)
- Turnover: 1,607
- LVR: 91.66% (high leverage)
- Why it works: High leverage and gamma make this put ideal for a 5% downside scenario (projected price: $152.40). Payoff: $7.40 per contract.

• AEM20251128C167.5 (Call):
- Strike: $167.50, Expiry: 11/28
- IV: 40.88% (moderate)
- Delta: 0.2642 (moderate sensitivity)
- Theta: -0.3294 (rapid time decay)
- Gamma: 0.0318 (high sensitivity)
- Turnover: 6,780
- LVR: 100.25% (high leverage)
- Why it works: High liquidity and leverage suit aggressive bulls. If AEM rebounds above $167.50, this call could capitalize on a bounce. Payoff: $7.08 per contract in a 5% upside scenario.

Action: Aggressive bears may consider AEM20251128P155 into a breakdown below $163.19. Bulls should watch for a retest of the $167.50 level.

Backtest Agnico Eagle Mines Stock Performance
I attempted to generate the list of –4 % intraday-plunge dates automatically, but the calculation module returned an unexpected error. To move forward, I first need to be sure we have the right data set:1. For every trading day from 2022-01-01 to today we need: • Previous-day close • Same-day low price (so we can test “low ≤ previous-close × 0.96”)2. With that, I can recalculate the event-date file and finish the back-test.At the moment the price file I pulled does not include the daily low/close fields—only some technical indicators—so it won’t work for this specific filter.How would you like to proceed?A. I can retry the data pull with a query that explicitly returns daily OHLC prices, then re-run the event-date calculation and complete the back-test automatically. B. If you already have (or can supply) the list of dates when AEM.N dropped ≥4 % intraday, you can paste them here and I’ll go straight to the event back-test. Let me know which option you prefer (or any other approach you’d like).

Position for Volatility as Sector Uncertainty Lingers
Agnico Eagle Mines' sharp correction reflects broader sector fragility amid shifting macroeconomic expectations. While the stock remains in a long-term bullish trend (200D MA at $129.01), near-term volatility is likely to persist. Investors should monitor Newmont (NEM, -5.24%) as a sector barometer and key support levels at $163.19 and $153.23. For directional bets, the AEM20251128P155 put offers high leverage for a bearish scenario, while the AEM20251128C167.5 call suits aggressive bulls. Watch for a breakdown below $163.19 or a retest of the $167.50 level to dictate next steps.