The CEO of Newmont (NYSE: NEM), the world's largest gold producer, has called for fiscal restraint in the industry despite a surge in gold prices. Speaking at a mining conference in Johannesburg, Natascha Viljoen warned against overspending, emphasizing the need for disciplined capital allocation to maximize investor benefits from expanding profit margins.
Gold prices soared in 2025, reaching a record high of $5,595 an ounce in January 2026, driven by safe-haven demand. While prices have since dipped 4.7% this year due to expectations of prolonged high interest rates, analysts predict a rebound to $5,013 an ounce within the next year.
Viljoen stressed that maintaining cost discipline is critical, even during high commodity price cycles. She cautioned that losing focus could lead to poor decisions when market conditions shift. She also highlighted gold's role as a low-risk investment and a store of long-term value amid global geopolitical uncertainty.
According to Viljoen, governments, fund managers, and individual investors are increasingly including physical gold in their reserves or portfolios. She described gold as a 'store of long-term value' and a 'low-risk investment,' reinforcing its appeal in uncertain times.