Newmont Corp (NYSE:NEM) shares are trading higher on Monday as precious‑metals prices jump, driven by a sharp move into safe‑haven assets after the Department of Justice opened a criminal investigation into Federal Reserve Chair Jerome Powell. The news has weakened the U.S. dollar and sparked fresh concerns about the Fed's independence, pushing investors toward gold and silver.
How A Federal Investigation Fuels Gold’s Ascent
Gold surged to new all‑time highs on Wednesday, climbing 2.4% to $4,619 an ounce and breaking above the $4,600 level for the first time, according to The Guardian. The rally comes as the dollar continues to slide following the unexpected announcement of the federal investigation into Powell.
“The main catalyst behind today’s move has been a surprise announcement that federal prosecutors have opened a criminal investigation into Federal Reserve Chair Jerome Powell,” said Fawad Razaqzada, market analyst at FOREX.com. The news quickly sparked worries about the Federal Reserve's independence, leading investors to pull back from U.S. assets and move into traditional safe havens. As a result, gold and silver jumped to new record highs as markets reacted to the potential fallout.
“If fears around Fed independence fade quickly, gold could see some near-term pressure as the dollar regains its footing,” Razaqzada noted.
Newmont’s Bullish Momentum: A Technical Breakdown
Newmont is currently showing strong bullish momentum, trading well above its key moving averages. The stock is positioned 10% above its 20-day SMA, 21.1% above its 50-day SMA, and a remarkable 57.2% above its 200-day SMA, indicating a solid upward trend.
The RSI is currently at 66.02, which is in neutral territory but approaching overbought levels. This suggests that while there is still momentum, traders should be cautious as the stock nears a potential pullback if it crosses into overbought territory.
MACD is above its signal line, indicating bullish momentum in the stock. This suggests that the current trend is strong, and traders might look for continuation patterns in the near term.
Key support is at $97.50, while there isn’t a defined resistance level at this time. If the stock approaches this support level, it could signal a potential reversal or a test of the current trend’s strength.
The golden cross in April, when the 50-day SMA crossed above the 200-day SMA, has set a positive tone for the stock’s longer-term outlook. This crossover often indicates a strong bullish trend, which aligns with the current price action.
Over the past 12 months, NEM has experienced a remarkable 188.77% increase, showcasing its strong performance and investor interest. This long-term trend reinforces the bullish sentiment surrounding the stock.
NEM Price Action: Newmont shares were up 3.39% at $112.68 at the time of publication on Monday. The stock is trading at a new 52-week high, according to Benzinga Pro.
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