Newmont Corporation (NYSE: NEM) saw its stock price fall by approximately 6.9% by mid-morning on Monday, reflecting a broader selloff in the precious metals sector. The decline in share value coincided with a dramatic contraction in silver prices, which had surged to an unprecedented high exceeding $80 per ounce overnight before reversing sharply downward.
That sharp reversal pushed silver prices down as far as $70.25 per ounce during the morning, settling at around $71.32 per ounce at the last update—a decrease of about 7.6%. Gold prices also declined, losing 4.3% to trade near $4,354.20 per ounce, further underscoring the volatility in this market segment.
The year 2025 has been remarkable for silver investors, with the metal starting the year near $20 per ounce and experiencing a more than threefold increase through the recent peak. In comparison, gold prices have appreciated by approximately 65% over the same period. These price surges offer significant returns for those viewing precious metals primarily as inflation hedges rather than income-generating assets like stocks, which can increase in value through business operations and product outputs.
Such substantial gains often encourage investors to liquidate some holdings to realize profits, which appears to be the primary driver behind the current price drop for both silver and gold. This profit-taking behavior is a common cyclical pattern in commodity markets, particularly when prices have ascended rapidly over a relatively short timescale.
Newmont’s stock price movement mirrors this trend, falling despite no apparent negative developments specific to the company itself. On the contrary, the investment bank Raymond James raised its price target on Newmont shares to $111 earlier on Monday and assigned an “outperform” rating based on favorable fourth-quarter gold price projections. This forecast suggests confidence in Newmont's financial performance despite short-term market fluctuations.
Analysts point out that while the current correction in prices might unsettle some investors, the broader performance of Newmont’s shares over 2025 has been robust, with a year-to-date increase of 185%. Moreover, the stock remains relatively attractively valued, trading at approximately 16 times earnings and offering a modest dividend yield of around 0.95%, suggesting ongoing potential for long-term gains and income.
Given these factors, it is possible that today's decline in Newmont's stock price represents a temporary market reaction rather than an indication of deteriorating fundamentals. Investors holding Newmont shares may not find immediate cause for concern, particularly within the context of the broader precious metals market dynamics and the company's stable valuation metrics.
Overall, the present adjustment in precious metals prices highlights the inherent volatility in commodity markets and the importance for investors to maintain a measured perspective amid swift price movements. While profit-taking can lead to temporary setbacks, firms like Newmont with strong earnings prospects and supportive analyst recommendations may withstand these fluctuations.