Newcrest (ASX:NCM) share price regains some shine as inflation worries mount

Investors are rekindling their spark with inflation-hedging bets on Thursday…
The post Newcrest (ASX:NCM) share price regains some shine as inflation worries mount appeared first on The Motley Fool Australia. –

Key points

Newcrest Mining share price rallies 6.3% as investors move on a rising gold spot price
Geopolitical tensions and the potential for rate hikes are also putting wind in gold miners’ sails today
The mining giant is expected to release its quarterly results on 28 January

The Newcrest Mining Ltd (ASX: NCM) share price is glistening with a green complexion on Thursday.

At the time of writing, shares in Australia’s largest listed gold mining company are trading at $25.47, up 6.3%. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 0.05% in afternoon trade.

What’s going on with the Newcrest share price today?

The Newcrest share price is having its best day since May 2020 when it gained 6.7%. However, the $19 billion gold-mining giant is moving without any new announcements out today.

If we step back and take a broader look at the gold sector, we see that Newcrest isn’t alone in its joyous performance. For reference, here’s how other gold miners are doing:

Northern Star Resources Ltd (ASX: NST) up 11%

Evolution Mining Ltd (ASX: EVN) up 8.5%

Chalice Mining Ltd (ASX: CHN) up 6.1%

This information would suggest the reason behind Newcrest’s move is due to a sector-wide catalyst. It is likely the strengthening in the spot gold price overnight that is causing today’s momentum.

According to CNBC, gold rallied 1.7% to US$1,842.9 an ounce. The upward move places the precious metal at a 2-month high. In turn, the Newcrest share price is benefitting from it.

The reason behind gold prices making a move could be 2-fold.

Firstly, the most recent reports indicate the safe-haven asset has found renewed appeal amid geopolitical tensions between Russia and Ukraine. White House press secretary Jen Psaki has said Russia could instigate a conflict at any point — possibly between January and February.

At the same time, investors have been rotating into investments that are perceived as inflation hedges as rate hikes look more likely.

Bloomberg Economics has forecast the first rate increase in the US in March. Meanwhile, Westpac Banking Corp (ASX: WBC) expects the Reserve Bank to raise rates in August.

When are quarterly results coming?

The market’s attention is heightened around this time of the year. We are fast approaching earnings season and some companies are already posting their quarterly results.

Newcrest’s December quarterly results are slated for release on 28 January. There’s a good chance this event will have shareholders on the edge of their seats, hoping the Newcrest share price reacts positively to the update.

The post Newcrest (ASX:NCM) share price regains some shine as inflation worries mount appeared first on The Motley Fool Australia.

Should you invest $1,000 in Newcrest Mining right now?

Before you consider Newcrest Mining, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Newcrest Mining wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

Leading fund manager says these blue-chip ASX shares are buys right now

5 things to watch on the ASX 200 on Monday

5 things to watch on the ASX 200 on Friday

How does the Newcrest (ASX:NCM) dividend stack up against other ASX 200 miners like BHP?

5 things to watch on the ASX 200 on Monday

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!