Shares in gold miner Newmont Corp (NYSE: NEM) fell by 4.2% by 11:45 today. The move comes on a day when gold prices continued their recent decline. After a strong start to 2026, gold is now up only about 4.3% as I write.
Why gold matters so much to Newmont
As recently discussed, Newmont’s sensitivity to gold prices is increasing due to a deliberate strategy of investing in its top-tier assets, including those acquired as part of the 2023 deal to buy Newcrest Mining Limited. As part of the strategy, Newmont has divested non-core assets and focused on gold. The increased sensitivity means Newmont’s stock price is likely to correlate more with the price of gold.
Will AI create the world’s first trillionaire? Our team just released a report on a little-known company, called an “Indispensable Monopoly,” providing the critical technology Nvidia and Intel both need.
Continue »
The gold price outlook
One possible reason for the recent relative weakness in gold is the sheer volume of speculative positions investors have taken in the precious metal over the past few years. For example, the increase in investment demand in 2025 more than offset the decline in demand from the jewelry sector (in response to high prices) and a decline in central bank (probably for the same reason).
As such, don’t be surprised if the price of gold and Newmont stock weaken this year. That said, the long-term fundamentals for gold still look excellent, as, despite a correction in 2025, the trend of global central banks increasing the share of gold held in their reserves is likely to continue as long as U.S. debt levels continue to balloon.
Should you buy stock in Newmont right now?
Before you buy stock in Newmont, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Newmont wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $483,476!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,362,941!*
Now, it’s worth noting Stock Advisor’s total average return is 998% — a market-crushing outperformance compared to 207% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
