Newmont Corp (NEM) shares climbed sharply on Monday as precious metals prices soared following an announcement that caught markets off guard: the Department of Justice has opened a criminal investigation into Federal Reserve Chair Jerome Powell. The news triggered a flight to safety that pushed gold to all-time highs and weakened the U.S. dollar, creating perfect conditions for gold miners like Newmont.

When Fed Drama Meets Gold's Perfect Storm

Gold hit new record territory on Wednesday, climbing 2.4% to $4,619 an ounce and breaking through the $4,600 barrier for the first time, according to The Guardian. The rally came as the dollar slid in response to the Powell investigation announcement—a development nobody saw coming.

"The main catalyst behind today's move has been a surprise announcement that federal prosecutors have opened a criminal investigation into Federal Reserve Chair Jerome Powell," said Fawad Razaqzada, market analyst at FOREX.com. The bombshell immediately raised questions about the Fed's independence, prompting investors to rethink their exposure to U.S. assets and pivot toward traditional safe havens. Gold and silver both rocketed to new record highs as the market digested what this could mean for monetary policy going forward.

Of course, nothing in markets is permanent. "If fears around Fed independence fade quickly, gold could see some near-term pressure as the dollar regains its footing," Razaqzada noted.

Reading the Technical Tea Leaves

Newmont is currently riding strong bullish momentum, trading comfortably above its key moving averages. The stock sits 10% above its 20-day simple moving average, 21.1% above its 50-day SMA, and an impressive 57.2% above its 200-day SMA—all signs pointing to a solid upward trend.

The RSI sits at 66.02, which puts it in neutral territory but approaching overbought levels. There's still momentum here, but traders might want to watch for potential pullback signals if the indicator crosses into overbought territory.

The MACD is above its signal line, confirming bullish momentum and suggesting the current trend has legs. Traders looking for continuation patterns might find opportunities in the near term.

Key support sits at $97.50, though there isn't a clearly defined resistance level at the moment. If the stock drifts back toward that support level, it could test whether this trend has staying power.

The golden cross that formed in April—when the 50-day SMA crossed above the 200-day SMA—set a positive tone for the stock's longer-term outlook. This classic bullish signal aligns nicely with the current price action.

Over the past year, NEM has posted a remarkable 188.77% gain, reflecting strong performance and sustained investor interest. That kind of long-term momentum reinforces the bullish sentiment surrounding the stock.

NEM Price Action: Newmont shares were up 3.39% at $112.68 at the time of publication on Monday, trading at a new 52-week high.