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Why is the Evolution share price tumbling 10% so far this week?

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The Evolution Mining Ltd (ASX: EVN) share price has tracked south this week, extending losses for the year to date.

At the time of writing, the Evolution share price is resting at $3.39 apiece on Friday.

In broad market moves, the benchmark S&P/ASX 200 Index (ASX: XJO) trades 19 basis points lower at the open on Friday at 6,516.

Gold has weakened again with the yellow metal giving back recent gains to continue its sideways movement.

It has been volatile in recent times amid recession fears and shifting treasury yields. Prices haven’t nudged past the US$1,870 per ounce mark since 6 May.

It now trades at US$1,824 per troy ounce, around 69 basis points down on the session.

Zooming out, it now trades back in line with longer-term support levels. It has fallen from a 19 April high of US$2,052 per troy ounce, as seen below, along with the Evolution share price.

Aside from that, mining shares continue to soften on the whole with the S&P/ASX 300 Metals and Mining Index (ASX: XMM) sliding from its previous high on 8 June at rapid pace.

Investors have sold off cash flow rich mining stocks in tandem with moves in the wider market this month. Fears of a recession, inflation and surging rates continue to be priced in.

This weakness is certainly a factor in relation to the Evolution Mining share price as well.

The losses come despite reports of potential tailwinds to precious metals from stagflation. Data shows gold is a good diversifier and performs well in these times.

If that’s the case, it could bode in well for the Evolution share price.

In the last 12 months, Evolution has slipped more than 27% into the red, after sliding 16% this year to date.

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