Why did the Newcrest share price pop 5% to a 2-month high?

Shares in the gold miner were surging today alongside the gold price.

| More on:
a man wearing a gold shirt smiles widely as he is engulfed in a shower of gold confetti falling from the sky. representing a new gold discovery by ASX mining share OzAurum Resources

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Newcrest Mining share price soared to a two-month high on Thursday
  • The ASX 200 gold stock was lifted by positive inflation news out of the United States overnight
  • Better-than-expected inflation numbers pushed the US and Australian share markets higher today, as well as the gold price 

The Newcrest Mining Ltd (ASX: NCM) share price soared by 3.72% on Thursday to close at $27.90.

Earlier in the day, the Newcrest share price hit a two-month high of $28.19 per share, up 4.79%.

No doubt, the gold miner was lifted alongside many other ASX 200 shares by news of lower-than-expected inflation numbers in the United States.

US headline inflation fell to 3% — the lowest level in two years — stoking hopes that the US Federal Reserve will cease raising interest rates.

The Dow Jones Industrial Average (DJX: .DJI) gained 0.25% on the news. The S&P 500 Index (SP: .INX) also lifted 0.74%.  

And as we all know, what happens in the US markets tends to follow in Australia.

That's why the S&P/ASX 200 Index (ASX: XJO) closed the session up 1.56% — or 111.2 points — to 7,246.9 points.

But there's another factor at play in the Newcrest share price's two-month high today.

Newcrest share price surges on gold price rise

As with all ASX shares tied to commodities, when the value of the product rises, so does the stock.

The gold price is trading at about US$1,960 per ounce on Thursday afternoon. That's an 0.18% rise for the day and an 0.9% bump over the past month.

This is the highest gold price we've seen in more than three weeks.

Once again, US inflation data is the catalyst behind the yellow metal's surge today.

The gold price has been climbing since late 2022 and hit a recent peak of US$2,016 per ounce in May.

This is not far off the historical record high of US$2,034 reached in August 2020.

The Newcrest share price is up 34% in the year to date.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. 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.

More on Gold

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Gold

Macquarie tips 28% upside for this ASX mining stock

Let's see which miner the broker is recommending to clients.

Read more »

Man in mining hat with fists raised and eyes closed looking happy and excited about the Newcrest share price
Gold

Guess which ASX 200 gold stock is higher on big update

This gold miner is on the move today after releasing its quarterly update.

Read more »

Red arrow on gold bars going down.
Gold

Why did the Northern Star share price just crash 7%?

ASX investors are punishing the Northern Star share price today. But why?

Read more »

Gold bars and Australian dollar notes.
Gold

These ASX 200 gold stocks are making moves on big news

These gold miners have released updates this morning. Let's see what they reported.

Read more »

ASX gold share price.
Gold

Which ASX 200 gold stock is racing higher on strong update?

It was another golden quarter for this miner.

Read more »

Two men in hard hats and high visibility jackets look together at a laptop screen at a mine site.
Gold

Down 50% in a year, time to pounce on this beaten-down ASX 200 gold stock?

A leading expert offers his verdict on this beaten-down ASX 200 gold miner.

Read more »

A woman in a business suit sits at her desk with gold bars in each hand while she kisses one bar with her eyes closed. Her desk has another three gold bars stacked in front of her. symbolising the rising Northern Star share price
Gold

Guess which ASX gold share is rocketing 13% on big news

It has been a golden day for this gold explorer's shareholders.

Read more »

A woman stands in a field and raises her arms to welcome a golden sunset.
Gold

Could Trump's 'Big Beautiful Bill' boost the gold price?

Will gold reach a new all-time high?

Read more »