The S&P/ASX 200 Index (ASX: XJO) is off to the races again this Wednesday. At the time of writing, the ASX 200 has gained a healthy 0.65%, putting the index back over the 7,000 point mark for the first time in almost two months. But the Newcrest Mining Ltd (ASX: NCM) share price is doing even better.
Newcrest shares are on fire today. The ASX 200 gold miner has gained an impressive 5.67% at the time of writing to $19.19 a share. That’s after the company closed at $18.6 a share just yesterday.
So what’s going on with Newcrest here that has gotten investors so very excited?
Why is the Newcrest Mining share price spiking 5% today?
Well, the first thing one normally does when examining the share price moves of a gold miner like Newcrest, is to look at the price of gold itself. A gold miner’s profitability is primarily influenced by what it can sell its gold for, after all.
As my Fool colleague James covered this morning, gold has indeed had a top time of it over the past 24 hours or so. The precious metal rose 2.1% overnight to US$1,716.30 an ounce. This was largely thanks to a decline in the value of the US dollar.
So with gold enjoying a surge in value as we’ve just seen, it’s perhaps no surprise that a gold miner like Newcrest is shining brightly on the ASX today.
We also see other ASX gold shares enjoying similar gains as well. The Northern Star Resources Ltd (ASX: NST) share price is presently up a healthy 6% at $9.96. While Gold Road Resources Ltd (ASX: GOR) shares are up an even more impressive 7.4% at $1.52.
At the current Newcrest Mining share price, this ASX 200 gold share has a market capitalisation of $17.2 billion, with a dividend yield of 2.06%.
The post Why is the Newcrest share price surging 5% on Wednesday? appeared first on The Motley Fool Australia.
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More reading
- 5 things to watch on the ASX 200 on Wednesday
- Why Arafura Rare Earths, BHP, Capricorn Metals, and Newcrest shares are rising today
- 5 things to watch on the ASX 200 on Monday
- Is there any good news in sight for the gold price and ASX 200 gold shares?
- 5 things to watch on the ASX 200 on Friday
Motley Fool contributor Sebastian Bowen has positions in Newcrest Mining Limited. 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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