The Newcrest Mining Ltd (ASX: NCM) share price has enjoyed a strong 2022, driven by positive market conditions.
This year to date, Newcrest shares have gained more than 13% in value.
In comparison, the broader S&P/ASX 200 Index (ASX: XJO) is trading relatively flat over the same period.
At the time of writing, Newcrest shares are swapping hands at $27.77 apiece, down 1.45%.
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Why has the Newcrest share price surged in recent times?
A common theme among gold mining companies, the Newcrest share price has been boosted by the improvement in gold prices.
Traditionally, investors flock to the yellow metal as a safe-haven asset when there is uncertainty in the market.
While the world is slowly moving past COVID-19, geopolitical tensions between Russia and Ukraine has sparked a gold rush.
In the past month, the price of gold soared above the US$2,000 barrier but has since fallen a touch under. Currently, gold is fetching US$1,952 an ounce.
In comparison, at the start of the year, the precious metal was fetching US$1,829.05. This represents an increase of 6.7% over the three-and-a-half-month period.
As such, Newcrest Star shares have risen from $24.48 since the beginning of the calendar year.
Is this a buying opportunity?
A couple of brokers weighed in on the Newcrest share price with varying price points late last month.
The team at Morgan Stanley cut its 12-month price target by 1% to $33.70 for Newcrest shares. This implies an upside of around 21% based on the current share price.
On the other hand, UBS lowered its outlook on Newcrest shares to 'neutral' from 'buy'. However, the broker raised its rating by 2.3% to $27.10.
It appears UBS believes that Newcrest shares are fully valued for the moment, with investors in agreeance.
