The De Grey Mining Limited (ASX: DEG) share price is having a sensational start to the week.
In afternoon trade, the gold developer's shares are up 10% to $1.23.
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Why is the De Grey share price jumping?
Investors have been buying the company's shares today following a rise in the gold price on Friday night.
In addition, the terrible events that have unfolded in the Middle East over the weekend have boosted demand for the safe haven asset on Monday.
This has led to the S&P/ASX All Ordinaries Gold Index (ASX: XGD) rising by over 5% this afternoon.
Why are its shares outperforming?
The De Grey share price could be outperforming the rest of the gold sector today thanks to a bullish broker note from last week.
That note saw analysts at Bell Potter describe the gold developer's Hemi Gold Project in Western Australia as an asset that would be very appealing to major gold players. In fact, it believes it is "an asset they can't afford not to own."
In light of this, Bell Potter has put a speculative buy rating and $1.80 price target on its shares.
Even after today's strong gain, this still implies a potential upside of 46% for investors over the next 12 months.
