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Highlights
- Gold prices have fallen further, continuing last week’s decline.
- Newcrest Mining shares have begun the week higher against the gold price pull back.
- NCM share price has gone up without any price sensitive announcements.
Gold price is sagging further below extending last week’s decline after an aggressive Federal Reserve rate hike to counter inflation. The higher US dollar and treasury yield seems to be casting a shade on the yellow metal’s gleam. On the other hand, the ongoing war between Russia and Ukraine forcing further sanctions against Russia support gold prices.
As a result, the demand for Australian metal supplies is anticipated by analysts to remain higher. One ASX listed gold explorer and miner is Newcrest Mining Limited (ASX:NCM) which has started April’s trade on a higher note.
Newcrest Mining shares rise against yellow metal’s slump
Gold focused ASX listed miner Newcrest Mining Limited’s share price has begun April on a new high and gains have continued post weekend. NCM share price closed Tuesday’s trade 0.29% higher from last week’s close. The share price movement, however, was exactly in the opposite direction of the yellow metal’s price today. While gold prices are sagging today worldwide, NCM shares ended today’s trade on the ASX slightly higher.
Image Source: © Flynt | Megapixl.com
While Newcrest Mining Limited did not issue any price sensitive announcements on the ASX yesterday, it did share a director’s interest notice that needs to be issues against as per the Listing Rules. The notice was for Philip Bainbridge, Newcrest Mining Limited’s newly appointed non-executive director. While as per the ASX announcement, Bainbridge does not hold any NCM securities he comes into the company with a rich experience of having implemented major projects with energy giants like Oil Search Limited (ASX:OSH) and Beach Energy Limited (ASX:BPT).
A look NCM’s price performance against ASX all ordinaries gold Index
In comparison to the ASX all ordinaries gold index (XGD) which has gained around 6.49% in last five days of trade, Newcrest Mining Limited’s share price has appreciated by 3.42% in the same time frame. In the past three months, NCM share price has moved up over 9.8% while the index XGD has appreciated about 10.5%. NCM share price seems to be giving an in-line price appreciation in the near term.
A look at NCM’s competitors today
While the shares of Newcrest Mining Limited closed Monday’s trade up about 0.294% higher, shares of its peer Northern Star Resources (ASX:NST) closed down 1.58% on previous close. In-line share price of Evolution Mining Limited (ASX:EVN) also dipped by about 1.8% today and the gold focused Perseus Mining Limited’s (ASX:PRU) shares lost about 2.375% today. In comparison to its peers NCM share price has remained in the green and has clearly not followed the gold slack influencing its peers.
Bottom line
The yellow metal’s price seems to be weaking now post a sudden boom due to the initial Russia-Ukraine war days, which was being considered a safe-haven asset. Though gold prices are slumping, the demand for Australian metal produce and the world turning towards Australia for metal supplies seems to be pushing the share prices of miners higher. It seems to be a major pushing factor behind the ASX gold stock prices too which also are visibly moving against the commodity ‘s price.
Also read- NST, EVN, OZL: Three ASX gold stocks which can be looked at amid Ukraine crisis
