Why Did Newmont Corporation Stock Lose 20% In Value?

Why Did Newmont Corporation Stock Lose 20% In Value?

The shares of Newmont Corporation (NYSE: NEM) have lost 20% in value since mid-April as gold prices declined from $2, 000/ounce in March to $1, 800 at present. While other commodities, including copper and iron, have also reported a decline over concerns of lower demand due to China's lower factory output, a strong U. S. dollar has been a deterrent to precious metals. The Russia-Ukraine war is causing key changes in geopolitical strategies of many countries – leading to new trade relations and energy security pacts. Thus, Trefis believes that growing uncertainties surrounding this shift is likely to propel gold prices until global macroeconomic stability is attained. Trefis highlights the historical trends in Newmont's revenues across key operating segments in an interactive dashboard analysis. Will demand for precious metals grow in 2022 and 2023? In 2021, Newmont reported 5. 9 million ounces of gold sales at an average price of $1, 788/ounce. Uncertainty surrounding macroeconomic recovery coupled with high benchmark oil prices led to a surge in commodity prices – assisting the company's top and bottom line in recent quarters. After observing a peak of $2, 200/ounce in 2020, the precious metal registered a correction in recent months as the