The Newcrest Mining Ltd (ASX: NCM) share price is heading north today despite no announcements from the company.
At the time of writing, shares in Australia's largest gold miner are up 2.71% to $23.88.
In comparison, shares in Newcrest's peers Northern Star Resources Ltd (ASX: NST) and Evolution Mining Ltd (ASX: EVN) are up 1.38% and 1.48% respectively.
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What's happened to Newcrest shares?
Investors are bidding up the Newcrest share price as the price of gold holds its ground at U$1,832 per ounce.
The yellow metal has dropped 2% since last Friday as the United States consumer price index report was released.
As inflation recorded a peak of 8.6% in May, investors braced for more aggressive rate hikes by the Federal Reserve.
Traditionally, when interest rates climb, investors shift their assets away from gold into more safer alternatives like government bonds.
However, with the latest 0.75% rate hike already priced in, it appears investors are bargain hunting.
Newcrest shares have fallen almost 18% since hitting a 52-week high of $28.96 in April.
Furthermore, the S&P/ASX 300 Metals and Mining Industry Index (ASX: XMM) is recovering lost ground to climb 0.99% to 5,739.2 points.
The sector contains companies that are involved with gold, steel and precious metals.
It's worth noting that if more aggressive rate hikes occur in 2022, this would likely drive investors away from gold.
Newcrest share price summary
The Russian war in Ukraine drove up commodity prices including gold which soared above the psychological US$2,000 barrier.
However, this was short-lived as China faced a COVID-19 crisis along with inflation movements that brought down the gold price.
Following a volatile 2022, the Newcrest share price is down around 3% for the period.
The company has a price-to-earnings (P/E) ratio of 15.17 and commands a market capitalisation of roughly $20.74 billion.
