The Newcrest Mining Ltd (ASX: NCM) share price has enjoyed a strong 2022, driven by positive market conditions.
This year to date, Newcrest shares have gained more than 13% in value.
In comparison, the broader S&P/ASX 200 Index (ASX: XJO) is trading relatively flat over the same period.
At the time of writing, Newcrest shares are swapping hands at $27.77 apiece, down 1.45%.
Why has the Newcrest share price surged in recent times?
A common theme among gold mining companies, the Newcrest share price has been boosted by the improvement in gold prices.
Traditionally, investors flock to the yellow metal as a safe-haven asset when there is uncertainty in the market.
While the world is slowly moving past COVID-19, geopolitical tensions between Russia and Ukraine has sparked a gold rush.
In the past month, the price of gold soared above the US$2,000 barrier but has since fallen a touch under. Currently, gold is fetching US$1,952 an ounce.
In comparison, at the start of the year, the precious metal was fetching US$1,829.05. This represents an increase of 6.7% over the three-and-a-half-month period.
As such, Newcrest Star shares have risen from $24.48 since the beginning of the calendar year.
Is this a buying opportunity?
A couple of brokers weighed in on the Newcrest share price with varying price points late last month.
The team at Morgan Stanley cut its 12-month price target by 1% to $33.70 for Newcrest shares. This implies an upside of around 21% based on the current share price.
On the other hand, UBS lowered its outlook on Newcrest shares to ‘neutral’ from ‘buy’. However, the broker raised its rating by 2.3% to $27.10.
It appears UBS believes that Newcrest shares are fully valued for the moment, with investors in agreeance.
The post How is the Newcrest share price tracking in 2022? appeared first on The Motley Fool Australia.
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More reading
- 5 things to watch on the ASX 200 on Monday
- 5 things to watch on the ASX 200 on Friday
- Yield curve inversion is bad news for ASX shares except for this sector
- Is Newcrest Mining considered a defensive ASX share?
- Why is the Newcrest (ASX:NCM) share price having such a strong start to the week?
Motley Fool contributor Aaron Teboneras 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.
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