The Northern Star Resources Ltd (ASX: NST) share price has continued to tread higher in the past month.
At the end of market trade on 15 July, shares in the gold miner finished the day at $6.75 apiece.
Fast forward a month, and the share has closed at $8.11, up 20% over the period.
Let's take a look at what's causing Northern Star shares to regain their shine lately.
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What's happened to the Northern Star share price?
A rebound in confidence across the market appears to be leading the Northern Star share price higher since mid-July.
The S&P/ASX 200 Resources (ASX: XJR) sector closed 1.17% higher to 5,442.4 points today and is up 13% in a month.
In July, the ASX experienced strong volatility as concerns mounted over the gloomy outlook of the world economy amid inflationary pressures.
However, this has all been put to bed for now as the latest consumer price index data out of the US indicated inflation was cooling off.
With that being said, the market has been nudging higher as it's likely that the US Federal Reserve will lay off its aggressive monetary tightening policy.
This is particularly important for the price of gold, as lower interest rates mean higher gold prices.
Investors tend to shift away from low-performing asset classes such as government bonds when the market is brimming with confidence.
In effect, stronger demand for gold leads to higher prices for it which, in turn, affects Northern Star's earnings.
At the time of writing, the price of the yellow metal is hovering around US$1,780 per ounce, up 4% in the past 30 days.
What do the brokers think?
Late week, a couple of brokers weighed in with their thoughts regarding the Northern Star share price.
According to ANZ Share Investing, UBS cut its price target by 2% to $9.80 for the gold miner's shares.
On the other hand, JPMorgan raised its rating by 5.6% to $9.50 per share.
Based on today's price, this represents an upside of 20.8% and 17%, respectively.
Both brokers believe Northern Star shares are significantly undervalued given the current economic environment.
Northern Star is scheduled to report its FY22 results on Wednesday 24 August.
