June proved to be a tough month for the Newcrest Mining Ltd (ASX: NCM) share price.
The gold miner’s shares began the month at $25.04 but by the close of trade on June 30 they had tumbled to $20.89, a fall of 16.6%.
In comparison, shares in fellow miner Northern Star Resources Ltd (ASX: NST) declined almost 24% over the same period, while the broader S&P/ASX 200 Resources (ASX: XJR) sector fell by around 11%.
The start of July hasn’t brought a change in fortunes for the Newcrest share price either — it closed 2.97% lower on Friday at $20.27.
What happened to Newcrest last month?
The continued fall in the price of gold in June led investors to sell off the Newcrest share price.
During times of uncertainty and volatility, gold is traditionally seen as a safe-haven asset for investors. However, with major central banks increasing interest rates due to rampant inflation, investors are shifting their assets into better risk/reward classes.
Subsequently, the spot price of gold has been on a downward path to trade slightly above the psychological US$1,800 barrier.
This is in stark contrast to when an ounce of gold was fetching as high as US$2,070 on 8 March.
The consumer confidence index hit a 16-month low while the United States economy contracted by 1.6% for the first quarter.
It appears investor risk appetite for gold has receded over the past week which has piled on selling pressure.
Investors will have to wait until next Tuesday to see if the Reserve Bank of Australia lifts the official cash rate again.
Newcrest share price summary
Over the last 12 months, the Newcrest share price has lost 20% after encountering challenging macroenvironmental factors.
Looking at the year to date, the miner’s shares are down 16%.
Based on today’s price, Newcrest commands a market capitalisation of approximately $19.19 billion.