Gold miners endured a brutal sell-off Tuesday, with sector-wide losses hitting double digits after bullion plunged more than 5% in a single session, marking the worst trading day for the metal since August 2020 and triggering its sharpest mining stock rout since the COVID-driven crash of March 2020.

The VanEck Gold Miners ETF (NYSE:GDX), which has been the year's top-performing equity industry fund with over 110% gains, dropped 9.8% during New York afternoon trading. Shares of Newmont Corp. (NYSE:NEM), the world's largest gold miner, fell 9.2%.

The collapse in miner stocks followed a synchronized retreat in precious metals as profit-taking and rising risk appetite across global markets met stiff resistance in gold's price near record highs.

Chart: Gold Miners Sink 10% As Bullion Crashes

What Sparked Tuesday’s Gold Sell-Off

“It looks as if gold is finally having a bit of a downside correction following its record-breaking upside run,” said David Morrison, senior market analyst at Trade Nation, in an emailed comment.

Morrison said the gold ...