Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site.

Newcrest Mining Limited Shares Bounce 3% As Gold Prices Jump

Newcrest Mining Limited (ASX:NCM) shares have joined fellow ASX-listed gold miners Evolution Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX:NST) in rallying, following a jump in gold prices.

Newcrest Mining Limited (ASX: NCM) shares joined fellow ASX-listed gold miners in rallying today, following a jump in gold prices.

Established in 1966, Newcrest is the ASX’s leading gold miner and producer, and amongst the largest gold mining companies globally.

Newcrest Shares

NCM share price
Data source: Google Finance

Over the past three years, Newcrest shares have risen as the gold price snapped back from multi-year lows in late 2015.

Shares of fellow gold miners, such as Northern Star Resources Ltd (ASX: NST) and Evolution Ltd (ASX: EVN), have also bounced back in that time.

Gold Prices in 2018

According to ABC Bullion, gold prices currently trade at $US1,341 an ounce, the highest price since September 2017. In Australian dollars, that’s $1,690 per ounce.

Gold is often perceived as a hedge against risk and uncertainty. Meaning, it’s a widely held belief amongst market commentators that when the market for shares or property performs badly gold performs better.

However, with global interest rates expected to rise in 2018, which is usually a sign of a strong economy, some commentators suggest gold could fall from here.

However, not everyone is convinced. Some pundits believe the connection between interest rates and gold is negligible.

“The theory is a “total fallacy””, The Telegraph quoted AJ Bell’s Russ Mould as saying.

Movements in currencies might help to explain why gold, and shares in gold miners, are rallying in early 2018. Recent falls in the US Dollar pushed gold to a four-month high on Friday.

Some commentators and analysts are also suggesting stocks, particularly those in the US, are overvalued and big investors are preparing for a crash.

“Fund managers think that stocks are overvalued with positioning disproportionately long, creating the risk of a rush for the exits at some point in the future,” Business Insider reports.

However, despite the 2017 rise in shares, there could be more good times ahead for global markets, something which could spell trouble for gold prices in the short run.

Compared to 2017, “2018 will probably be less rosy as we expect [the] US dollar to recover and 10y US Treasury yields to rise,” Georgette Boele, of ABN AMRO, wrote in the investment firm’s 2018 outlook. “Gold prices will probably move towards USD 1,250 per ounce but a short wave of position liquidation could push it to USD 1,200.”

Fortunately, if gold prices fall it could be an opportunity, says Boele. “This would be an opportunity to position for a gold price rally in 2019.

In the meantime, Australian gold producers, which often pay for their expenses in Australian dollars (AUDUSD) and receive US dollars when selling, continue to enjoy the higher commodity prices.

Keep Reading

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

5%+ in passive income

Owen Rask’s investing report available

With bond ETFs like ASX:IAF and the S&P 500 riding high, now could be one of the best times to start earning passive income from a portfolio of shares and ETFs.

In this free analyst report, our Chief Investment Officer, Owen Rask, names 10 ASX stocks and ETFs to watch.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Skip to content