Why Newmont Corporation Stock Just Dropped

Key Points

• Conflict in the Mideast drove gold prices higher at first, but they’re falling today.

• War can be inflationary, but it might also convince the Federal Reserve not to lower interest rates.

• 10 stocks we like better than Newmont ›

Newmont Corporation (NYSE: NEM) stock tumbled 7.3% through noon ET Tuesday on a confluence of confusing factors. As you’ve probably heard, there’s war in the Mideast. Ordinarily, investors flee to gold and silver as safe havens in troubled times, and at first, that’s what seemed to be happening this time, too.

Problem is, gold and silver prices decided to tank today, and they’re taking the stock price of this gold miner down with them. (Newmont also mines silver.)

Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »

Image source: Getty Images.

Gold and silver prices fall

Gold prices closed February around $5,278 per ounce, according to data from TradingEconomics.com. Prices spiked after U.S. and Israeli forces began striking Iran over the weekend, rising as high as $5,416 early Monday before starting to fade.

At last report, gold was trading at $5,101 per ounce, down 4% from yesterday’s close.

The story on silver is similar — but worse. Silver’s price closed at $93.73 per ounce at the end of February before moving higher, topping $96.10 Monday. Today, silver is down 7.4% to $82.42 per ounce.

Is Newmont stock a sell?

Why is this happening? Well, the U.S. dollar — also a safe haven — is strengthening. Thus, it takes fewer dollars to buy an ounce of gold or silver. The natural result is falling prices for precious metals.

War can also be inflationary — which should be good for precious metal prices. But if inflation spooks the Fed into holding interest rates steady, this could lower inflation long term — or so the thinking goes.

Personally, I expect gold and silver prices to react to war worries the way they usually do. I think the general price trend will be up, not down. With Newmont stock trading for a cheap 20 times earnings, the stock looks like a buy to me.

Should you buy stock in Newmont right now?

Before you buy stock in Newmont, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Newmont wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $523,599!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,118,640!*

Now, it’s worth noting Stock Advisor’s total average return is 951% — a market-crushing outperformance compared to 194% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of March 3, 2026.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.