2 ASX 200 gold stocks just downgraded by brokers (and one upgraded)

ASX brokers telling investors to cash out of gold.

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Key points
  • ASX gold stocks like Newcrest have been on fire this year
  • Gold has risen above US$2,000 an ounce in 2023, resulting in investors flooding into gold shares
  • But some ASX brokers don't think the party has too long to last, with several gold miners receiving downgraded ratings this week 

ASX 200 gold stocks have been in the headlines quite a bit in 2023 so far. Earlier this month, we saw gold rise above the psychologically important US$2,000-per-ounce price level. This saw ASX gold shares like Newcrest Mining Ltd (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) rise to new 52-week highs.

In fact, ASX 200 gold stocks have been some of the best shares to own in 2023 so far. Newcrest shares are up an impressive 38.15% year to date as it stands today (although it has been helped by a takeover offer). Northern Star has also done well, up more than 21% this year. But perhaps this is as good as it gets for ASX gold shares like Newcrest and Northern Star.

Two brokers pointing and analysing a share price.

Image source: Getty Images

Brokers rate ASX 200 gold stocks

That's certainly the view of a couple of ASX brokers. According to reporting in the Australian Financial Review (AFR) today, ASX broker Morgans has cut its rating on Newcrest shares to hold. The broker's new 12-month share price target is $25.80 for Newcrest. If realised, this would lead to a 10.4% fall from the current pricing we are seeing today.

Likewise, fellow ASX broker Credit Suisse has cut its rating for Northern Start to neutral. In a bit of a twist though, Credit Suisse sees Northern Star shares at $13.70 in a year's time. That would be a slight rise of 1.63% or so from the current share price.

Interstingly, Morgans isn't bearish on all ASX 200 gold stocks. It has raised its rating on another ASX 200 gold miner, Regis Resources Ltd (ASX: RRL), to add.

One more point to consider might be the views of Matthew McLennan of First Eagle Investments.

At the AFR's Alpha Live conference this week, McLennan noted that gold has historically "done well during periods of equity market dislocation and volatility".

This was backed up by the Future Fund's Raphael Arndt and AustralianSuper's Katie Dean, who are reportedly looking at which assets performed well during the 'stagflation' period of the 1970s. These included gold, as well as other commodities and real estate.

So ASX 200 gold investors have a lot to consider today. But only time will tell if gold, and gold miners like Newcrest, Regis and Northern Star, prove to remain a lucrative investment in 2023.

Motley Fool contributor Sebastian Bowen has positions in Newcrest Mining. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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