Why is the Northern Star (ASX:NST) share price having such an unhappy new year?

plummeting gold share price

The Northern Star Resources Ltd (ASX: NST) share price is having a poor start to 2022, plunging lower on its first day back.

The dip follows on from a 2% gain on New Year’s Eve and follows the price of gold’s recent slip.

At the time of writing, the Northern Star share price is $9.32, 0.9% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently recording a 1.54% gain while the All Ordinaries Index (ASX: XAO) is up 1.49%.

Let’s take a closer look at what might be going on with Northern Star and its peers today.

What’s weighing on the Northern Star share price?

The spot price of gold is gaining on Tuesday. According to data from CNBC, it is currently trading at US$1,803.20 an ounce – a 0.1% gain.

However, it tumbled yesterday to close at US$1,800.10 per ounce, 1.44% lower than it was at the end of 2021.

Overnight, Reuters reported gold’s dip is likely due to rising bond yields and equities. Thus, the metal’s attractive position as a haven from volatility may have lost its shine.

Of course, today is the first day the ASX is trading since New Year’s Eve. Therefore, the yellow metal’s spot price might be dragging on the Northern Star Resources share price.

Fortunately (or, unfortunately), the gold miner isn’t alone in the red.

The ASX 200 is being weighed down by the metal’s producers on Tuesday. St Barbara Ltd (ASX: SBM) is the index’s second worst performer, while Ramelius Resources Limited‘s (ASX: RMS) is only just behind it.

They’ve seen their share prices tumble 3.2% and 2.5% respectively.

Meanwhile, the S&P/ASX All Ordinaries Gold (ASX: XGD) index has slipped 0.43%.

Today’s dip sees the Northern Star share price trading 29% lower than it was this time last year.

The post Why is the Northern Star (ASX:NST) share price having such an unhappy new year? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Northern Star Resources right now?

Before you consider Northern Star Resources , you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Northern Star Resources wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Brooke Cooper 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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/34jejL0

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s