Newmont Soars 3.86% on Strategic Divestiture and Bullish Momentum – What’s Fueling the Surge?

Summary
• Newmont (NEM) surges 3.86% intraday, hitting a 52-week high of $105.67
• Institutional investors boost stakes, with Exchange Traded Concepts LLC adding 83.8% in Q3
• Company announces $29.5M stake sale in Fuerte Metals, reducing ownership to 19.5%
• RSI near overbought territory (70.25) and MACD above signal line signal strong momentum

Newmont’s stock is surging on a combination of strategic asset sales, institutional buying, and a broader gold rally. The company’s decision to offload shares in Fuerte Metals, coupled with robust technical indicators, has ignited investor optimism. With gold prices climbing amid geopolitical tensions and rate-cut expectations, NEM’s rally reflects both operational clarity and sector-wide tailwinds.

Strategic Divestiture and Institutional Buying Drive Newmont’s Rally
Newmont’s 3.86% intraday surge is fueled by its decision to sell a 4.5% stake in Fuerte Metals, generating $29.5 million in proceeds. This move aligns with the company’s strategy to focus on Tier-1 assets while monetizing non-core holdings. Concurrently, institutional investors are aggressively accumulating shares, with Exchange Traded Concepts LLC increasing its stake by 83.8% in Q3. The sale of Fuerte shares, combined with a broader gold price rally driven by geopolitical tensions and rate-cut expectations, has positioned NEM as a beneficiary of both operational clarity and sector momentum.

Gold Sector Gains Momentum as Kinross (KGC) Trails NEM’s Rally
While Newmont leads the gold sector with a 3.86% gain, Kinross Gold (KGC) trails with a 2.4% intraday rise. The sector’s strength is underpinned by gold prices hitting record highs amid U.S. fiscal deficits and global geopolitical risks. NEM’s strategic divestiture and robust institutional backing distinguish it from peers like KGC, which, despite a strong production profile, lacks the same level of near-term catalysts. The gold sector’s rally reflects a flight to safety, with NEM’s operational focus and liquidity position giving it an edge.

Capitalizing on NEM’s Bullish Momentum: ETFs and Options Playbook
• 200-day average: $68.12 (well below current price)
• RSI: 70.25 (approaching overbought)
• MACD: 3.60 (bullish divergence)
• Bollinger Bands: Price at $105.20, above upper band of $103.71

Newmont’s technicals suggest a continuation of its bullish trend, with key resistance at $105.67 (52-week high) and support at $93.14 (20-day SMA). The RSI nearing overbought territory and MACD above its signal line indicate strong momentum, though traders should monitor for a potential pullback. The GDX ETF (gold miners) could serve as a leveraged proxy, though no direct ETF data is provided here. For options, two contracts stand out:

• NEM20251226C105
- Type: Call
- Strike: $105
- Expiration: 2025-12-26
- IV: 31.06% (moderate)
- Leverage: 67.75% (high)
- Delta: 0.5130 (moderate sensitivity)
- Theta: -0.4801 (rapid time decay)
- Gamma: 0.1044 (high sensitivity to price moves)
- Turnover: 485,798 (liquid)
- Payoff at 5% upside: $105.20 → $109.96 → max(0, $109.96 - $105) = $4.96
- Why it works: High leverage and gamma make this ideal for a short-term breakout above $105.67.

• NEM20251226C106
- Type: Call
- Strike: $106
- Expiration: 2025-12-26
- IV: 31.40% (moderate)
- Leverage: 93.76% (very high)
- Delta: 0.4109 (moderate sensitivity)
- Theta: -0.4137 (rapid decay)
- Gamma: 0.1008 (high sensitivity)
- Turnover: 39,479 (liquid)
- Payoff at 5% upside: $105.20 → $109.96 → max(0, $109.96 - $106) = $3.96
- Why it works: Extreme leverage amplifies returns if NEM breaks above $106, though higher risk due to closer strike.

Action: Aggressive bulls should target NEM20251226C105 for a breakout above $105.67. Conservative traders may use NEM20251226C106 for a higher-risk, higher-reward play.

Backtest Newmont Stock Performance
The backtest of NEM's performance after a 4% intraday surge from 2022 to now shows favorable results. The 3-Day win rate is 53.24%, the 10-Day win rate is 57.49%, and the 30-Day win rate is 61.74%, indicating that NEM tends to perform well in the short term following the intraday surge. The maximum return during the backtest period was 4.67%, which occurred on day 57, suggesting that there is potential for gains but also the possibility of moderate drawdowns in the immediate aftermath of the surge.

Newmont’s Rally Gains Steam – Position for a Breakout or Reversal
Newmont’s 3.86% surge is a blend of strategic divestiture, institutional buying, and gold’s safe-haven appeal. With RSI near overbought levels and MACD bullish, the stock is primed for a test of its 52-week high at $105.67. Traders should watch for a breakout above this level to confirm the trend’s sustainability. Meanwhile, Kinross (KGC) remains a sector laggard despite its 2.4% gain. For those seeking leverage, the NEM20251226C105 option offers a high-gamma, high-leverage play on the next leg higher. Act now: If $105.67 breaks, target NEM20251226C105 for a short-term pop.