Newmont Mining (NYSE: NEM): Drop in Gold Prices May be Final Straw for This Struggling Miner

As the crisis in Syria appears headed toward a resolution, key commodities markets are no longer on edge. Oil prices have begun to slip, and gold prices have resumed their downward trajectory, making a quick retreat from their 150-day moving average.

Falling gold prices can spell serious trouble for gold miners. In recent years, mining costs have steadily increased due to higher labor costs, a greater regulatory burden and a move toward more deeply buried seams of gold. As an example, Barrick Gold (NYSE: ABX) has taken a $5.1 billion charge to reflect higher costs at its new Pascua-Lama mine.

Gold prices have been under pressure since this spring when analysts at Goldman Sachs (NYSE: GS) suggested that there was no fundamental reason for gold prices to remain above $1,500, especially since inflationary fears have increasingly proved to be unfounded.  (more)
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