Here's Why Newmont Stock Popped Today (Hint: Wall Street Likes its Valuation)
2026-07-14 15:36
•Lee Samaha •The Motley Fool
•••••• • Axe Capital view
Why Newmont’s Upgrade Matters for South African Gold
Newmont’s valuation appeal highlights why AngloGold Ashanti could benefit from rising gold demand.
Newmont Corp’s recent upgrade by TD Cowen caught my eye, especially given the focus on central banks diversifying away from U.S. dollar assets. This is a clear signal gold demand might strengthen over the medium term. South African gold miners like AngloGold Ashanti and Sibanye-Stillwater stand to gain if this trend holds. Newmont’s appeal lies in its efficient, lower-cost production and shedding non-core assets, which is a model our local miners should continue to emulate. The rand has a habit of weakening when global gold prices advance, making these stocks attractive hedges in rand terms. Still, the picture could change if the dollar rebounds sharply or global inflation cools more than expected, sapping gold’s shine. Investors should watch both the USD/ZAR exchange and emerging safe-haven flows for clues. this is just my opinion and not financial advice
I’m watching AngloGold Ashanti closely, leaning to buy on dips around rand weakness, while keeping an eye on USD/ZAR moves. Avoid rushing into miners with structural issues like high costs or debt.
- AngloGold Ashanti
- USD/ZAR
- Sudden dollar strength
- Lower-than-expected inflation reducing gold appeal
7/10
Newmont Corp (NEM) stock rose up to 5.4% following a TD Cowen analyst upgrade from hold to buy on valuation grounds, despite the analyst lowering the price target to $127 from $129. The analyst sees strength in gold's long-term outlook driven by central bank diversification away from U.S. dollar assets, positioning Newmont as an ideal way to play a potential gold recovery.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Lee Samaha
Categories: Macro, Central Banks, Commodities, Metals, Forex, Financials
Tickers: NEM
Sentiment: Positive - Stock received an upgrade to buy from hold by TD Cowen analyst on attractive valuation grounds. The company's focus on lower-cost gold production and divestment of non-core assets positions it well for a potential gold recovery driven by central bank demand for diversification away from U.S. dollar assets.
Keywords: gold mining, analyst upgrade, valuation, central bank demand, commodity stocks, gold prices, speculative money
Insights:
- NEM: Positive: Stock received an upgrade to buy from hold by TD Cowen analyst on attractive valuation grounds. The company's focus on lower-cost gold production and divestment of non-core assets positions it well for a potential gold recovery driven by central bank demand for diversification away from U.S. dollar assets.