What happened to the Northern Star Resources share price?
Shares of Northern Star Resources Ltd [ASX:NST] gained more than 4.1% in early trade today as the gold price climbed more than US$11 to US$1,230.
Why are NST Shares Up?
The rising gold price is just as much about the falling value of the US dollar as anything else. The markets are still uncertain about how positive (or negative) President Donald Trump’s policies will be on the US economy.
Although US private sector jobs increased during the week leading up to Trump’s inauguration, other economic data showed that wage growth slowed. If the markets are hoping for US consumers to spend more money in an attempt to boost the economy, slower income growth won’t help.
All up, a weaker outlook for the US economy, and a weaker US dollar, have resulted in a stronger gold price. And that’s good news for gold miners.
What now for Northern Star Resources Ltd?
Gold stocks have performed well since the start of the year. The Northern Star Resources share price is up 17.7% since the start of the year. That’s compared to a 1.4% drop in the S&P/ASX 200 index over the same timeframe.
A weaker dollar is good for the gold price. So if the US dollar remains weak, it could spell ongoing good news for Aussie gold miners such as Northern Star Resources.