The Northern Star Resources Ltd (ASX: NST) share price is down 0.7% at time of writing, having earlier been down more than 1.5%.
This comes as the broader S&P/ASX 200 Index (ASX: XJO) is enjoying a strong rebound from the past days' selling, currently up 1.2%.
But it's not just the Northern Star share price underperforming the benchmark today.
Fellow ASX 200 gold producer Newcrest Mining Ltd (ASX: NCM) is down 1.3%, and Regis Resources Limited (ASX: RRL) is also down 1.3%.
So, what's happening with ASX gold shares today?
What's going on in the global gold market?
The Northern Star share price and other ASX gold shares are likely taking a hit from a slipping gold price.
Heading into the weekend, the yellow metal was trading for US$1,802.60 per ounce. The gold price was on the rise as investors sought out the classic haven asset amid fear the new Omicron COVID variant might disrupt the global economic recovery.
Since then, gold has retraced to US$1,785.17 per ounce, down some 1%.
Looking ahead, what can investors expect next for the Northern Star share price?
According to Howie Lee, an economist at Oversea-Chinese Banking Corp (quoted by Bloomberg):
Overall we expect a period of heightened volatility, even with industrial metals. The virus' actual impact is not fully known at this point – depending on how the situation evolves, we may see either a rebound or a continued selling off. More clarity, we expect, will arrive after two weeks.
Gold bugs are also closely watching the US Federal Reserve for any hints that the world's most influential central bank may tighten its monetary policies sooner than forecast. Lee added:
The market remains wary of the impact of the Fed's increasingly hawkish stance on interest rates, despite virus fears. Short term, we expect more funds to flow into haven assets like gold, but long-term we expect global rate normalisation to keep a lid on gold's prices.
Northern Star share price snapshot
The Northern Star share price has struggled this year, down 27% since 4 January. By comparison, the ASX 200 is up 10% year-to-date.
Over the past month, Northern Star shares have gained 6%.
