Barely a week after posting record numbers for 2025, shares of Newmont (NYSE: NEM) are getting punished. The gold stock plunged this week, dropping 13% at its lowest point in trading through 11 a.m. ET Friday.
You’d expect the price of gold, a “safe haven” asset, to rise amid the ongoing conflict in the Middle East. Instead, gold has fallen this week, pulling Newmont shares along with it. Here’s what you need to know.
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Gold is recouping some of its losses Friday morning even as I write this, as weak labor market data for February has raised fears of an economic slowdown.
Gold prices, however, fell sharply through the week, hovering close to all-time highs of $5,417 per ounce earlier in the week before dropping to below $5,100 an ounce on Thursday.
Gold is falling partly because the U.S. dollar has strengthened, making the yellow metal more expensive for global buyers. Rising U.S. Treasury yields have also made bonds an attractive alternative to gold, hurting demand and sending gold prices lower through the week, rather than higher as one might expect during a major geopolitical event like a war.
As the world’s largest gold producer, Newmont’s fortunes are tied closely to gold prices, which is why its stock has felt the March heat so far.
Investors shouldn’t panic-sell Newmont stock. Newmont is on solid footing, generating a record $7.3 billion in free cash flow and repaying a large chunk of debt in 2025.
To be sure, Newmont expects its gold production to drop by nearly 10% this year, which means gold prices must rise, not fall, for the miner to maintain its growth pace.
Staying the course in precious metal stocks, however, requires a high tolerance for volatility to capture long-term gains. Newmont, with its scale and financial fortitude, is still one of the best gold stocks you could own.
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