The S&P/ASX 200 Index (ASX: XJO) is having a fairly disappointing start to the trading week so far this Monday. At the time of writing, the ASX 200 is down by 0.76% at under 7,100 points. But bucking that trend so far this morning is the Newcrest Mining Ltd (ASX: NCM) share price.
Newcrest shares are currently up by a pleasing 3.6% at $26.96 a share, after rising more than 4% at one point. That's after this ASX 200 gold miner closed at $26.02 last week and opened at $26.82 a share this morning. It puts Newcrest's 2022 year to date gains at 10.1%, and its gains over the past month at an impressive 19.9%.
So why are Newcrest shares defying the broader market and shooting higher today?
Image source: Getty Images
Why are Newcrest Mining shares glittering today?
Well, it appears that the price of gold itself might be playing a large role here. As a gold miner, there are few things that affect the valuation of Newcrest more than the gold price itself. And the precious metal has indeed been making some big moves of late. Gold is currently being priced at close to US$1,990 an ounce. That is its highest level in almost 2 years. It also represents a sharp appreciation, considering gold was under US$1,800 an ounce just over a month ago.
Gold is a traditional safe-haven asset. It seems to have a particular appeal during times of economic or geopolitical stress. So it's perhaps no surprise then that gold has shot up in value in light of the current war in Ukraine.
That's perhaps why we are also seeing other ASX gold mining shares see similar moves today. Although it is worth noting that Newcrest is among the more tamer moves that we see. For example, the Northern Star Resources Ltd (ASX: NST) share price is currently up a far more dramatic 6.5% at the time of writing. Perseus Mining Limited (ASX: PRU) shares are up 5%, while Gold Road Resources Ltd (ASX: GOR) shares have gained more than 5.5% so far today.
At the current Newcrest Mining share price, this ASX 200 gold miner has a market capitalisation of $21.28 billion, with a dividend yield of 2.52%.
