Newmont Shares Face Headwinds Amid Precious Metals Sell-Off

The recent sharp correction in gold prices has laid bare the direct correlation between major mining equities and sentiment in the precious metals market. Newmont Mining's stock experienced notable downward pressure this week, despite an absence of fresh company-specific news. This indicates the primary driver is not internal management decisions, but rather the trajectory of the underlying commodity.

The weakness appears to be a sector-wide phenomenon rather than an isolated event. Industry peer Barrick Mining also retreated during the same period, according to TIKR data, underscoring that the sell-off is a broad industry response to shifting commodity prices.

Precious Metals Retreat Weighs on Valuation

The pullback in Newmont's share price is not rooted in operational performance but instead mirrors a rapid reversal in the gold market. After reaching a record high in late January, the price of gold cooled significantly in subsequent days. This movement immediately impacted major producers, with Newmont among the most affected.

Consequently, the stock has continued to move away from its late-January peak. Shares closed at $108.53 on Thursday, representing a decline of approximately 17.75% from its 52-week high of $131.95.

Should investors sell immediately? Or is it worth buying Newmont Mining?

Silver's Underperformance Adds to the Drag

Additional pressure originated from a second source: silver. Reports indicate silver corrected even more sharply than gold. This development is particularly relevant for Newmont, as the company's production portfolio includes silver alongside gold and other metals. When multiple precious metals decline simultaneously, it creates a compounded headwind for miners—even when their day-to-day operations continue unchanged.

Awaiting Hard Data from Upcoming Earnings

Notably, this period of price adjustment occurred without new operational guidance from the company. TIKR reported no recent statements from management regarding production, operational changes, or margins. The price action thus resembles a classic commodity-driven revaluation: the market is repricing the sector based on revised assumptions for precious metal prices, not due to any strategic shift at Newmont itself.

This makes the next scheduled data point especially significant. Newmont is set to release its fourth-quarter and full-year 2025 financial results on February 19, 2026. Historical context suggests the potential for positive surprises; for the third quarter of 2025, the company reported earnings per share of $1.71, a figure that beat analyst expectations by roughly 24%, according to Public.com.