Despite still trading lower than its 52-week high, the Newcrest Mining Limited (ASX: NCM) share price has been climbing higher in 2020 as investors flock to ASX 200 gold shares. But while investors have been snapping up the Aussie gold miner, is it still in the buy zone?
Why the ASX 200 gold miner's shares are soaring
While the S&P/ASX 200 Index (ASX: XJO) is down 16.83% this year, Newcrest's value has surged 5.79%. That means the Aussie gold miner has outperformed the ASX 200 benchmark by an impressive 22.62% in 2020.
The main factor driving the Newcrest Mining share price higher is the global gold price. The value of gold has surged this year amid the COVID-19 pandemic, rising geopolitical tensions and an oil price war.
Investors don't like uncertainty, and there's been plenty of that in 2020. This means the gold price has reached multi-year highs above the US$1,750 per ounce mark on the back of strong demand. That's good news for the Newcrest Mining share price which has climbed to $32.00 per share.
Is the Newcrest Mining share price in the buy zone?
Newcrest is a solid large-cap ASX share at the best of times. It's worth $25.9 billion at the moment and is well inside the ASX50. However, the perceived safety of gold has supported the gold miner's share price so far this year.
Having said that, I won't be buying Newcrest shares. While the Aussie gold miner could continue to outperform this year, I like to invest for the long-term. It's easy to get distracted by short-term share price movements, but it pays to remember your investment strategy and avoid the day-to-day noise.
Foolish takeaway
There are plenty of investors looking to invest in ASX gold shares right now. While a soaring gold price could support the Newcrest Mining share price in the short-term, buying shares only makes sense as part of a longer-term investment strategy.
