The Northern Star Resources Ltd (ASX: NST) share price hit a 52-week of $5.46 this afternoon as investors continue to head for the safety of gold due to the perceived risk of a war on the Korean peninsular.
As one of Australia's leading producers of gold via its West Australian Kalgoorlie and Jundee tenements the miner is benefiting as the U.S. dollar price of gold surges to US$1,340 an ounce this afternoon.
That's just short of a 52-week high of US$1,350.52 an ounce, despite the U.S. Fed being in the middle of a cash rate hiking cycle that should in theory make gold less attractive, compared to cash as an investment.
If events settle down on the Korean peninsular a falling gold price could drag shares in Northern Star and its rivals like Newcrest Mining Limited (ASX: NCM) back down with it.
Over FY 2017 Northern Star posted a record profit of A$215.3 million and paid 9 cents per share in dividends. According to the Financial Times analysts have a median share price target of $5 on the business.
