FTSE 100 mining and precious metals stocks came under significant selling pressure on Friday, May 15, with Fresnillo PLC [LSE: FRES], Antofagasta PLC [LSE: ANTO], Anglo American PLC [LSE: AAL], and Endeavour Mining PLC [LSE: EDV] among the index’s biggest fallers as gold slipped 1.4% to $4,586.42 an ounce and silver sank more than 6% to $78.26.
The FTSE 100 itself was trading down 1.18% at 10,250.93 by mid-morning according to Google Finance data, with the mining complex accounting for a meaningful portion of the decline as the index’s commodity-heavy composition amplified the sector’s losses.
The trigger was a sharp reversal in sentiment around the US-Iran conflict, following President Trump’s dismissal of Tehran’s latest peace proposal as a “piece of garbage,” combined with his warning that the ceasefire was on “life support,” statements that sent a relief rally building across metals and miners sharply into reverse.
The link between Iran and gold prices is more complex than a simple risk-off dynamic, and understanding it requires tracking the mechanics of the conflict’s impact on interest rate expectations rather than just its effect on sentiment.
When Iran closed the Strait of Hormuz earlier in 2026, oil surged past $100 a barrel, stoking inflation and forcing the Federal Reserve into a higher-for-longer stance on rates, which is toxic for gold as a non-yielding asset, and the metal duly sold off more than 25% from its January peak before recovering toward current levels.
With the peace deal stalling again on Friday, traders were repricing more of the same: higher oil, higher inflation, fewer or later rate cuts, and therefore a more hostile environment for gold prices regardless of the geopolitical anxiety the conflict also generates.
Global brokerages have already trimmed their 2026 rate cut forecasts in response to the inflation trajectory linked to the conflict, with some now pencilling in no cuts at all for the remainder of the year, a stark shift from the two to three cuts that were being priced at the start of 2026.
Fresnillo and Endeavour, as pure-play precious metals producers whose revenue is almost entirely derived from gold and silver prices, bore the brunt of the sell-off, while Antofagasta and Anglo American faced additional pressure as copper also pulled back from recent highs, with the broader risk-off mood depressing sentiment across all commodity-linked equities.
Gold futures were trading at $4,566.40 per ounce by mid-session, down 2.54% on the day, while GBP/USD had weakened to 1.3345 and GBP/EUR to 1.1466, adding a modest currency headwind for UK investors holding dollar-denominated commodity positions.
