Why Newmont Mining Rallied Today
Gold prices increased with a little help from Treasury Secretary Scott Bessent.
Overview
Shares of Newmont Mining (NYSE: NEM) rallied on Wednesday, up 7.9% for the day.
Newmont already reported second-quarter earnings in late July, and there wasn't much company-specific news today. Newmont did announce it had agreed to sell an undeveloped gold project to Canadian mining company StrikePoint Gold for $70 million, plus an additional $50 million contingent payment tied to future milestones.
Details
However, for the world's largest mining company that primarily mines gold, that small divestiture is relatively inconsequential. More consequential was today's rise in gold prices, driven by lower long-term interest rates, which appeared to be due to an increase in the Treasury Department's Treasury Bond buyback program announced this morning.
Source
Originally published at www.fool.com.