Newmont Corporation (NEM) is having quite the Monday, with shares pushing to new highs after the company announced plans to trim its position in Fuerte Metals. It's a relatively modest transaction, but combined with gold's own surge to record levels, investors are clearly feeling bullish about the world's largest gold producer.
The Deal Details
Newmont, which produces gold, silver, copper, zinc, and lead, has agreed to sell more than 6.77 million shares of Fuerte Metals through its subsidiary Goldcorp Canada ULC. The shares are going for $4.35 Canadian dollars (about $3.16 USD), and the deal should close within a week.
This sale will reduce Newmont's ownership from 24% down to roughly 19.5%. The company made it clear they don't plan to reduce their stake any further below that level, though they'll keep an eye on market conditions going forward. Sometimes it's just about right-sizing your portfolio.
Gold's Golden Moment
The bigger story here might be what's happening with gold itself. Precious metals stocks are catching a lift across the board as gold reaches new highs, driven by fiscal deficits piling up in the U.S., UK, Europe, Japan, and China. Add in rising geopolitical tensions, and you've got a classic recipe for investors seeking safe-haven assets.
Technical Picture Looking Strong
From a technical perspective, Newmont is showing serious bullish momentum. The stock is trading 13.1% above its 20-day simple moving average, 18.3% above its 50-day SMA, and an impressive 54.7% above its 200-day SMA. That's a solid upward trend by any measure.
The RSI sits at 67.05, which is neutral but creeping toward overbought territory. Translation: the stock has strong momentum, but traders might want to watch for potential pullbacks if RSI crosses above 70. The MACD is above its signal line, another bullish indicator.
Overall, the technical setup looks promising with strong momentum indicators and solid long-term performance. Still, traders should stay alert for any signs of reversal as the stock breaks into new all-time high territory.
Price Action: Newmont Corporation shares were up 4.01%, trading at $105.35 at the time of publication.