Inflation concerns and escalating conflicts in the Middle East have led to significant turmoil in the markets, particularly impacting Newmont Corporation (NEM). The world’s largest gold mining company saw its shares plummet 10% in early Thursday trading, dipping below the $100 mark for the first time since January, and marking a nearly 30% decline from its 52-week high of $134.88.

The drop in Newmont’s stock is closely tied to a sharp decline in gold prices, which fell over 5% to below $4,600 per ounce. This decline comes as the Federal Reserve maintains interest rates amid rising oil prices, which surged nearly 7% to $114 per barrel. Higher interest rates increase the opportunity cost of holding gold, while rising energy costs further squeeze miners’ margins, creating a challenging environment for precious metals.

For investors, the current volatility presents a test of patience. While Newmont is generating strong free cash flows and bolstering its balance sheet, it may be prudent to wait for market stability before making new investments. For a deeper dive into the implications of these developments, I recommend checking out the full article.

Source: fool.com