Newmont Shares Under Pressure Amid Sharp Gold Correction

Newmont Mining US6516391066

Shares of Newmont, the world's largest gold producer, faced significant selling pressure on Friday. A sharp correction in the precious metals market, which had enjoyed a powerful start to the year, has now extended to mining equities. Market participants point to a substantial wave of gold selling, driven by profit-taking and shifting speculation around U.S. Federal Reserve leadership.

The downturn follows a 3.80% decline in Newmont's stock on Thursday, which closed at $126.93. During European trading hours on Friday, losses accelerated to approximately 5%. This move correlates with a dramatic drop in the spot price of gold, which market reports indicate fell between 4.8% and 7%.

Market observers attribute the sudden decline to two concurrent factors. Following gold's strongest January performance in decades, investors are aggressively locking in profits. Furthermore, rumors concerning the potential nomination of Kevin Warsh as the next Fed Chair are creating uncertainty about the future trajectory of monetary policy.

Upcoming Quarterly Report in Focus

Investor attention is now turning to Newmont's scheduled release of its fourth-quarter 2025 financial results on February 19, 2026. The report will be scrutinized for evidence of how effectively the company capitalized on the previously record-high gold prices. Analysts will also assess whether management succeeded in controlling costs despite persistent inflationary pressures. These figures are likely to influence whether the current share price weakness is viewed as a buying opportunity or the start of a more prolonged consolidation phase.

Analyst Confidence Remains High

Despite the recent volatility, leading investment banks have maintained notably bullish price targets for Newmont, with several issuing upward revisions just days ago:

• Canaccord Genuity raised its target to $140 on January 23.
• Scotiabank set a $152 target on January 26, citing the company's high leverage to gold prices.
• BMO Capital Markets increased its target to $145 with an "Outperform" rating on January 28.

These assessments reflect a continued belief in the underlying fundamental strength of Newmont's business, even amidst short-term commodity market turbulence.