The Saracen Mineral Holdings Limited (ASX: SAR) share price has continued its strong run and is up a sizeable 12% to $1.50 in late morning trade.
This brings the gold miner's year-to-date return to over 51%, compared to an 11.5% gain by the S&P/ASX All Ords Gold (Index: ^AXGD) (ASX: XGD).
Why have its shares rocketed higher today?
Following the release of a strong quarterly update yesterday, a couple of positive research notes have emerged from leading brokers.
The first from Canaccord Genuity reveals that its analysts have upgraded the gold miner to a buy rating and given it a $1.50 price target.
Elsewhere, according to a note out of the equities desk of Macquarie, its analysts have retained their outperform rating and lifted their price target to $1.60.
The broker appears to believe that Saracen is well placed to deliver on its guidance this year following strong production at its Carosue Dam and Thunderbox sites.
Should you invest?
While I would agree that Saracen's production has been impressive, I'm not a buyer of the gold miners right now due to the prospect of rising rates in the United States.
As rates rise and treasury bonds widen, I expect the gold price to come under heavy selling pressure unless a significant risk event occurs.
I feel this is likely to put pressure on the share price of Saracen and industry peers Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST).
