Gold stocks continue to sell off in March. Shares of the world’s largest gold mining company, Newmont Corporation (NYSE: NEM) fell nearly 5% in early morning trade today, extending its March losses to 18% through 11:40 a.m. ET Wednesday.
Is this an opportunity to buy?
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The price of gold fell more than 2.5% today, slipping below the critical $5,000-per-ounce mark, as investors fear the Federal Reserve will signal that interest rates will remain high for longer amid sticky inflation and rising oil prices.
The Fed will announce its latest interest rate decision on March 18. Brent crude oil price, meanwhile, rose sharply by over 5% during the day, driven by intensified conflict in the Middle East and persistent supply disruptions through the Strait of Hormuz. At the same time, the producer price index for February rose more than expected.
Because the demand for gold generally falls when interest rates are high, the yellow metal is selling off amid heightened uncertainty.
You’d rarely expect a gold stock to rise when the gold price dips. Newmont stock has also had a massive run-up in the last one year, more than doubling in value. Profit-taking on a dip in gold price, therefore, shouldn’t come as a surprise.
With everyone offloading Newmont stock, it’s tempting to follow the crowd. Don’t give in to your temptation, though. Instead of hitting the panic button, these dips are an opportunity to buy shares of one of the most resilient gold miners in the industry.
Newmont generated a record $7.3 billion in free cash flow in 2025 and used $3.4 billion each to repay debt and return to shareholders.
Newmont is committed to growing dividends through commodity cycles and aims to maintain a minimum cash balance of $5 billion through the cycle. That’s an incredibly powerful goal to have in the volatile precious metals industry, where cash becomes your biggest defense during challenging times.
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