Here’s How The Recent Slide In Gold Prices Impacted Newmont Stock

Here’s How The Recent Slide In Gold Prices Impacted Newmont Stock

UKRAINE - 2021/06/21: In this photo illustration, a Newmont Mining Corporation logo seen displayed ... [+] on a smartphone. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images)

Newmont stock (NYSE: NEM) has declined more than 4% in the last one month, underperforming the broader market (S&P 500) which declined less than 1% during the same period. The recent decline in the stock price was driven by a drop in gold prices. Global gold price per ounce has dropped by almost $100 in the last one month, from $1,870/ounce to $1,770/ounce. This was mainly after U.S. President Joe Biden extended Jerome Powell’s tenure for one more term as the U.S. Federal Reserve Chairman. Earlier it was anticipated that Biden might pick Lael Brainard as the Fed chair, who is more dovish than Powell. But the final decision has led to speculation of a faster rise in interest rates, which has strengthened the U.S. dollar and weakened gold prices over recent weeks. With gold contributing more than 90% of Newmont’s revenues, NEM stock has dropped over the last month.