Why is the Northern Star share price sinking 9% today?

It’s a rough day for the S&P/ASX 200 Index (ASX: XJO) gold miner Northern Star Resources Ltd (ASX: NST) share price.

It’s tumbling to its lowest point in nearly four years amid disappointing guidance from a peer and the struggling gold price.

At the time of writing, the Northern Star share price is $7.26, 9.14% lower than its previous close.

For context, the ASX 200 is currently up 1.53%.

Let’s take a closer look at what’s going on with the ASX 200 gold giant today.

What’s weighing on the Northern Star share price?

The Northern Star share price is slumping on Monday. Its downturn comes amid news the company’s fellow ASX 200 gold miner Evolution Mining Ltd (ASX: EVN) is expecting its full-year production to fall.

Evolution told the market it expects its financial year 2022 production to be around 6% lower than that of financial year 2021. It’s also expecting its production costs to be higher.

Such news might have weakened the market’s sentiment for ASX 200 gold miners on Monday.

Additionally, shares involved in the yellow metal currently make up today’s worst performers on the S&P/ASX 200 Materials Index (ASX: XMJ).

Shares in Evolution are down around 18% right now, while those in Newcrest Mining Ltd (ASX: NCM) have slipped 5%.

Fortunately, the materials sector is buoyed by its other constituents. It’s currently up 2.3%.

The tumble among ASX 200 gold stocks comes as the commodity’s price continues to struggle.

Gold futures rose just 50 US cents on Friday, less than 0.1%, to US$1,830.30 an ounce, according to CommSec. Meanwhile, the spot gold price closed Friday trading at US$1,826 an ounce, marking a second consecutive weekly drop. It fell 0.6% over the course of last week.

The Northern Star share price slumped 15.58% last week. It’s currently 22% lower than it was at the start of 2022. It has also fallen 28% since this time last year.

The post Why is the Northern Star share price sinking 9% today? appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: Metcash and Imugene jump, Evolution downgrades guidance again
• Evolution share price plunges 20% as full year production expected to fall
• 5 things to watch on the ASX 200 on Monday
• Why is the Evolution share price tumbling 10% so far this week?
• The Northern Star share price has lost 7% so far this week. What’s happening?

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 Scott Phillips.

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