Newmont Corporation (NYSE:NEM) shares are trading lower Monday afternoon as gold pulls back from recent record highs, pressuring sentiment across precious-metals equities. Here’s what investors need to know.
- Newmont shares are retreating from recent levels. What’s pressuring NEM stock?
What To Know: Spot gold and the SPDR Gold Trust (AMEX:GLD) had surged in recent sessions and briefly broke above a fresh all-time high before slipping early Monday amid profit-taking.
The recent rally came as part of a broader metal shock tied to tight physical supply in parts of Asia, a localized liquidity squeeze and renewed demand for tangible stores of value amid geopolitical and monetary uncertainty.
Newmont is a mining company, not a bullion holder. It explores for, develops and operates gold mines and related processing facilities, producing doré and refined gold for sale into the market. It also produces other metals such as copper as byproducts at certain operations, but gold remains the core revenue driver.
Because Newmont’s revenues are largely linked to the realized gold price, a decline in gold can quickly compress expected margins. Many operating costs, labor, power, consumables and sustaining capital, do not fall as fast as the metal price, so each $1 move in gold can have an outsized impact on cash flow, earnings expectations and valuation models for miners.
That leverage helps explain why Newmont can fall even on modest gold pullbacks after sharp rallies, especially in the near term.
Benzinga Edge Rankings: According to Benzinga Edge rankings, Newmont shows exceptionally strong Momentum with a score of 97.04, alongside a high Quality score of 94.25, underscoring robust technical strength despite the stock’s pullback.
NEM Price Action: Newmont shares were down 5.72% at $99.74 at the time of publication on Monday. The stock is approaching its 52-week high of $106.34, according to Benzinga Pro data.
Support levels can be identified around the $97.67 mark, which was the intraday low on Monday. If the stock breaks below this level, it could open the door for a more significant retracement toward the next support level, which is likely to be around $90, where buying interest may re-emerge.
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