Fresnillo Shares Plunged On Friday – Here’s Why

Shares in Fresnillo (LON: FRES), the world’s largest silver producer and Mexico’s biggest gold miner, tumbled 6.22% on Friday as gold and silver prices suffered a sharp sell-off following a dramatically stronger-than-expected US jobs report.

The stock opened at 3,158p before sliding to close at 2,986p, with over one million shares changing hands on the London Stock Exchange.

Jobs Report Delivers Body Blow to Precious Metals

The trigger was a blowout US non-farm payrolls report for May, which showed the American economy added 172,000 jobs — roughly twice the consensus analyst forecast, with April’s figures also revised upward.

The data stoked fears that the Federal Reserve, now under the chairmanship of Trump-appointee Kevin Warsh, will raise interest rates rather than cut them, delivering a body blow to precious metals.

Gold dropped around 3.3% on the day, erasing all of its 2026 price gains and recording its lowest London auction price since the first trading day of the year. From January’s record high near $5,600 per ounce, the metal now trades around $4,328. Silver fared no better, shedding 8.2% on Friday alone, falling below $68 — its lowest level since late March.

Rate Hike Fears Drive Dollar and Treasury Yields Higher

Rising rate expectations hammered gold and silver by driving up the US dollar and pushing benchmark 10-year Treasury yields above 4.50%. Higher borrowing costs increase the opportunity cost of holding non-yielding precious metals, prompting a broad sell-off across the sector. Mining peers Anglo American and Antofagasta also fell sharply, though Fresnillo bore the steepest losses given its near-pure exposure to gold and silver revenues.

Production Concerns Add to the Pressure

Adding to the pressure, Fresnillo had already reported a slip in quarterly silver production last month, though the company maintained its full-year guidance. Geopolitical tensions — including ongoing conflict in the Middle East — have kept oil prices elevated and inflation expectations high, further complicating the outlook for rate cuts.

Analysts cautioned that with the Fed seen as increasingly hawkish, precious metals could remain under pressure in the near term, posing a continued headwind for Fresnillo’s share price.