Gold and Newmont Stock Rebound. Why the Precious Metal’s Selloff Isn’t Over Yet.

Gold was paring back some of its recent losses on Wednesday, signaling to investors that the worst of the selloff may be over. (DAVID GRAY/AFP via Getty Images)

Key Points

• Gold futures climbed 1.2% to $4,032 an ounce, trading about 9% below its record high from earlier this month.
• Gold mining stocks rose, with Newmont up 2.4%, Agnico Eagle Mines up 3%, and Barrick Mining up 2.7%.
• Despite a recent drop, gold is still up 53% for the year, making profit-taking tempting for traders.

Gold prices were bouncing back on Wednesday, but investors should be wary of buying the dip—the precious metal’s recent brutal selloff probably isn’t over just yet.

The most actively-traded gold futures contract climbed 1.2% to $4,031 an ounce in early trading, having dropped for three straight sessions. The move means bullion is now trading about 9% short of the record high it hit earlier this month.

Gold mining stocks were also rising. Newmont shares gained 2% in early trading, and Wheaton Precious Metals climbed 2.4%.

Created with Highcharts 9.0.1Gold futures per ounceSource: FactSet

Created with Highcharts 9.0.1Oct. 17Oct. 293,8503,9003,9504,0004,0504,1004,1504,2004,2504,3004,3504,400$4,450

Gold has dropped sharply since last Monday, with investors deciding that it was a good time to dump the metal after a stellar run for most of 2025.

One factor supporting prices on Wednesday could be a looming Federal Reserve policy decision. The central bank is widely expected to cut interest rates by a quarter of a point, which tends to boost gold because it becomes more appealing relative to other risk-off assets that have yields, such as bonds and savings accounts.

Still, it’s difficult to see the selloff being over just yet. Even after its recent drop, gold is still up 53% for the year, meaning it’ll still be tempting for traders to lock in profit. Geopolitical tensions also appear to be thawing, with President Donald Trump and Chinese leader Xi Jinping set to meet in South Korea on Thursday, which could chip away at the appeal the metal has as a so-called safe haven.

“Gold will find support at some stage, and it’s quite likely that there will be a sharp reversal when it does,” David Morrison, analyst at the U.K. spread betting and foreign exchange brokerage Trade Nation, said. “But as things stand, it’s difficult to identify any significant support levels as the market shakes off the bullish froth.”

“The question is whether there is another record-breaking rally left in this market, or if gold has topped someway short of the $5,000 an ounce that so many analysts were looking for,” he added.

Write to George Glover at george.glover@dowjones.com