Gold Holds Steady Amid US Jobs Data, Fed Rate Cut Bets

Gold prices held steady near $3,370 an ounce on Friday, despite a 0.6% loss on Thursday, as resilient US jobs data reinforced views that the Federal Reserve will hold interest rates next week. Bullion is up more than 25% this year, driven by uncertainty around global trade and conflicts. Investors have grown more confident about risk assets in recent weeks following progress in US trade negotiations.

Newmont Goldcorp Corp (NYSE:NEM) reported strong second-quarter earnings that exceeded analyst expectations, driven by higher gold prices and robust operational performance. The company's shares rose 2.6% following the announcement, highlighting investor confidence in the mining giant's ability to navigate challenging market conditions.

Newmont's adjusted earnings per share for the second quarter reached $1.43, significantly surpassing the analyst consensus of $1.14. Revenue for the period came in at $5.32 billion, exceeding estimates of $4.84 billion. The company produced approximately 1.5 million attributable gold ounces during the quarter, generating a record quarterly free cash flow of $1.7 billion. The average realized gold price surged to $3,320 per ounce in Q2, up from $2,944 in the first quarter [1].

Tom Palmer, Newmont's Chief Executive Officer, commented on the company's performance: "Newmont delivered a strong second quarter, producing approximately 1.5 million attributable gold ounces and generating an all-time record quarterly free cash flow of $1.7 billion, underscoring the strength of our world-class portfolio."

The company's gold cost applicable to sales (CAS) decreased 1% to $1,215 per ounce on a co-product basis compared to the previous quarter, primarily due to lower direct operating costs following the sale of higher-cost, non-core assets. Gold all-in sustaining costs (AISC) decreased 4% to $1,593 per ounce. Newmont reported net income of $2.1 billion for the quarter, which included a $699 million gain on the sale of assets. The company has been actively divesting non-core assets, receiving approximately $2.5 billion in net cash proceeds year-to-date [1].

Newmont also announced an additional $3.0 billion share repurchase program and declared a quarterly dividend of $0.25 per share. Since the last earnings call, the company has returned $1.0 billion to shareholders through share repurchases and dividend payments. The company maintained its 2025 production guidance and ended the quarter with $6.2 billion in cash and $10.2 billion in total liquidity, while reducing debt by $372 million since the last earnings call [1].

References:
[1] https://www.investing.com/news/earnings/newmont-beats-expectations-as-gold-prices-surge-reports-record-cash-flow-4151937
[2] https://www.businessinsider.com/donald-trump-jerome-powell-federal-reserve-renovation-interest-rate-inflation-2025-7
[3] https://fortune.com/article/current-price-of-gold-07-24-2025/