Newmont Stock Rises Amid Gold Price Recovery
Newmont Corporation (NEM) saw its stock rise by nearly 3% on Thursday morning after a sharp sell-off the previous day triggered by the U.S. Federal Reserve's first interest rate hike in three years. The Fed, under new chairman Kevin Warsh, raised rates to combat high inflation, increasing borrowing costs and reducing demand for gold as investors shifted toward higher-yielding assets like bonds. However, gold prices rebounded on Thursday morning after falling to a one-month low of $4,333 the previous day. The price climbed back above $4,410 per ounce, which helped support Newmont's stock performance. Analysts suggest that while rising rates may continue to pressure gold in the long term, short-term volatility remains. Newmont currently trades at 15.7 times trailing earnings with an expected annual growth rate of nearly 15% over five years and a dividend yield of 0.9%. The stock is seen as slightly undervalued but not yet strongly attractive for investors.
Tickers: $NEM
Topics: Federal_Reserve gold_prices stock_reaction