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Gold's wild ride leaves junior miners like Excellon reeling in 2026

From $5,500 highs to a brutal correction—how Fed rates and oil surges reshaped mining's survival game. Can Excellon outlast the storm?

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1 min read
The image shows a graph depicting the official U.S. gold reserves and gold price from 1900 to 2008....
The image shows a graph depicting the official U.S. gold reserves and gold price from 1900 to 2008. The graph is accompanied by text that provides further information about the data.

Gold's wild ride leaves junior miners like Excellon reeling in 2026

The mining sector is facing a turbulent period in late March 2026. Junior companies like Excellon Resources are struggling as commodity prices swing and funding grows harder to secure. Excellon's stock has fallen nearly 40% in the past month, now trading at just €0.24 per share. Gold prices have seen dramatic shifts over the past two years. From around $2,173 per ounce in March 2024, they climbed steadily to $2,625 by the end of that year. A surge in early 2025 pushed prices up over 54% year-to-date, breaking $4,000 per ounce. By late January 2026, gold peaked near $5,500, only to crash sharply by 17-22% to about $4,407 by late March.

Early drivers included strong central bank demand (80 tonnes per month), ETF inflows exceeding $50 billion since 2024, and geopolitical tensions. De-dollarization trends and inflation hedging also fueled the rally. But sentiment shifted as the US Federal Reserve signalled higher-for-longer interest rates (3.5-3.7%) and inflation fears persisted. A stronger dollar, rising bond yields, and easing Middle East tensions further weakened demand, while oil prices surged above $100 per barrel.

Against this backdrop, mining firms are under pressure. Liquidity concerns have pushed some to seek alternative funding, such as 'bought deals' or exercising warrants. Investors now favour companies with clear progress in moving from exploration to production. Excellon Resources, like others, must demonstrate operational stability and financial resilience to regain momentum. Excellon's next corporate updates will be closely watched by investors. The company's ability to navigate funding challenges and advance its projects will determine its path forward. For now, volatility remains a defining feature of the junior mining market.

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