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The gold sector is enjoying a robust start to the week, with the S&P/ASX All Ords Gold Index climbing 0.6% to 8,639.5 points. This upward momentum extends the index’s impressive year-to-date gain to 17%. Notably, two ASX-listed gold shares are driving this performance, reaching new highs and capturing investors' attention. Here’s a closer look at these standout performers:
Newmont Corporation (ASX:NEM)
Newmont Corporation, a global leader in gold mining, has seen its Australian-listed shares hit a record high of AU$80.06 on Monday. This new peak follows a strong performance in the gold market, with Newmont’s NYSE-listed shares also reaching an 18-month high. Over the past year, Newmont’s shares have surged approximately 35%, driven by a booming gold price.
Several factors contribute to this surge. Central banks worldwide are significantly increasing their gold reserves, geopolitical conflicts in Ukraine and the Middle East are bolstering demand for safe-haven assets, and falling interest rates are further supporting gold prices. As a result, the spot gold price has achieved a record high this month, positively impacting Newmont’s profitability.
Analysts at Macquarie are optimistic about Newmont’s future performance. They have given the shares an "outperform" rating and set a price target of AU$90.00. This suggests a potential rise of about 12% from current levels over the next year, indicating continued strong performance for this gold mining giant.
Northern Star Resources Ltd (ASX:NST)
Northern Star Resources is also scaling new heights, with its shares reaching a multi-year high of AU$16.11 on Monday. This marks a notable increase of over 40% since the same time last year, reflecting the overall strength in the gold market. Northern Star’s rise is attributed to the booming gold price, coupled with its growing production and efficient cost management.
The company’s strong performance is further supported by analysts at Macquarie, who have issued an "outperform" rating and a price target of AU$19.00 for Northern Star’s shares. This projection implies a potential upside of approximately 18% over the next 12 months, reinforcing the positive outlook for this gold miner.
Both Newmont Corporation and Northern Star Resources are benefitting from the gold sector’s impressive gains, driven by a combination of global demand and favorable market conditions. As gold prices continue to soar and these companies maintain strong operational performance, their shares are set to remain attractive investments in the gold sector. For investors, keeping an eye on these developments could be key to capitalizing on the ongoing bullish trend in gold mining.
