Newmont Stock Jumps as Investors Reverse Course on Interest Rate Hike

Newmont Corporation's stock price jumped 2.8% on Thursday morning as investors reversed course after the U.S. Federal Reserve raised interest rates for the first time in three years.

The rate hike, announced by new Federal Reserve Chairman Kevin Warsh, means that mortgages will become more expensive and credit card interest rates will rise. The target interest rate range is now 3.75% to 4%, up from its previous range of 2.5% to 3%. This move is aimed at combating high inflation, but it has had the opposite effect on gold prices.

Gold prices fell to $4,333, their lowest point in a month, after the rate hike. However, they have since rebounded and are now trading above $4,410 an ounce.