Why is the Newcrest share price defying Friday’s sell-off?

a woman wearing a sparkly strapless dress leans on a neat stack of six gold bars as she smiles and looks to the side as though she is very happy and protective of her stash. She also has gold fingernails and gold glitter pieces affixed to her cheeks.a woman wearing a sparkly strapless dress leans on a neat stack of six gold bars as she smiles and looks to the side as though she is very happy and protective of her stash. She also has gold fingernails and gold glitter pieces affixed to her cheeks.

The Newcrest Mining Ltd (ASX: NCM) share price is shrugging off the latest sell-off on the ASX this morning.

At the time of writing, shares in Australia’s largest gold mining company are climbing 2.57% to $24.52.

In comparison, the S&P/ASX 200 Index (ASX: XJO) is yet again deep in the red by 2.32% to 6,438.4 points. This means the benchmark index has now lost more than 8% in the past week.

What’s going on with Newcrest?

Despite the company not providing any new announcements to the market today, investors are bidding up the Newcrest share price.

The price of gold has rebounded for a second consecutive session overnight to fetch close to US$1,850 per ounce.

After hitting a one-month low of US$1,805 on Tuesday, the yellow metal has seen an uptick following Wall Street’s slump.

Furthermore, momentum is shifting to safe-haven assets such as gold after the Federal Reserve handed down a 0.75% rate hike this week in an attempt to combat inflation.

For context, this is the largest interest rate rise by the United States central bank since 1994.

Also likely helping the Newcrest share price is the latest reports from UBS and Macquarie.

Both brokers are viewing the gold sector as a favourable choice amid the extreme volatility on the ASX.

According to The Australian, UBS upgraded Newcrest peer Evolution Mining Ltd (ASX: EVN) to a “buy” rating.

This appears to be having a positive effect on the other gold miners as recession fears mount again.

Newcrest share price summary

Regardless of edging higher today, the Newcrest share price remains relatively flat in 2022.

Although, when looking at the past 12 months, its shares have fallen by around 9%.

Newcrest commands a market capitalisation of approximately $21.35 billion.

The post Why is the Newcrest share price defying Friday’s sell-off? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of January 12th 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

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 recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/VnLaudU

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 )

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