Ramelius Resources Ltd (ASX: RMS) shares plummeted 9.41% in morning trade on Thursday, as part of a broader selloff in ASX gold stocks. The S&P/ASX All Ordinaries Gold Index declined 7.1% during the same trading session, significantly underperforming the broader ASX 200 index which was down 1.6%.

The sharp decline in Ramelius Resources and other gold miners follows a substantial retracement in the gold price. Gold has fallen from US$5,322 per ounce on March 2 to US$4,834 per ounce, representing a decline of more than 9% this month. This price movement has triggered a sector rotation from gold stocks to energy stocks, with investors moving capital as oil prices surge 38% since early March.

Additionally, rising energy prices are fueling inflation concerns, which impacts gold's attractiveness. Central bank actions have contributed to the pressure on gold stocks, with both the U.S. Federal Reserve and Reserve Bank of Australia citing energy costs in their recent policy decisions. Gold, which pays no yield and is priced in U.S. dollars, typically performs better in a low or falling interest rate environment.