Newmont Faces 31% Gold Mining Index Drop as S&P 500 Jumps 8%
NEM•Gold miners gauge is down 31% since end-February while the S&P 500 has gained 8%, prompting Old West Investment Management to cut sector exposure. Tuttle Capital trimmed gold and silver stocks allocation from 15% to 5% since the Iran conflict began, reallocating into high-asset, low-obsolescence tech plays.
1. Gold Mining Index Plummets
Gold mining stocks have slumped sharply, with a key NYSE miners gauge down 31% since end-February while the broader S&P 500 rose 8% over the same period. This divergence reflects unprecedented volatility in gold as it trades on shifting geopolitical headlines instead of safe-haven demand.
2. Hedge Funds Slash Exposure
Deep-value investors have cut back on gold miners, with Old West Investment Management reducing exposure and Tuttle Capital trimming its gold and silver allocation from 15% to 5% since the Iran conflict began. These funds are redirecting capital into sectors deemed less vulnerable to AI disruption under high-asset, low-obsolescence strategies.
3. Sector Trading Patterns Shift
Gold miners have mirrored meme-stock volatility, rallying on signs of easing hostilities and plunging when conflict escalates. This erratic behavior challenges traditional hedge characteristics of gold and could weigh on major producers like Newmont as investor sentiment dominates fundamentals.
