The Northern Star Resources Ltd (ASX: NST) share price struggled in June, but could it steam ahead in July?
Northern Star shares fell 23% from $8.89 each at market open on 1 June to $6.84 a share at market close on 30 June.
Let's take a look at the outlook for this ASX gold share in July.
Can the Northern Share share price go higher?
The Northern Star share price fell in June, but some analysts see potential upside for the gold miner's shares.
Citi analysts have recently retained a buy rating on the Northern Star share price but cut the price target to $12.10. This is still almost 77% upside on the current share price. Commenting on the outlook for Northern Star in light of gold prices, Citi said:
We've trimmed our gold price in FY22/23. "Push and Pull" frictions can keep average prices elevated, but with upward momentum lagging. On a six to 12 month view we now see gold trading at US$1775 per ounce vs spot US$1853 per ounce.
We remain at buy.
Meanwhile, Macquarie also is optimistic about the future of the Northern Star share price, with an $11 price target. This is a nearly 61% upside based on today's price.
Gold prices fell 2.1% in the month of June and have declined further in July to nearly nine-month lows, Trading Economics data shows.
In a research note today, ANZ senior economist Felicity Emmett noted "gold prices remained under pressure" in global markets as the US dollar strengthens ahead of more US inflation data being released. She said:
An increase in CPI could stiffen the resolve of the Fed to proceed with another big increase in interest rates later this month.
Investors continue to cut their exposure to the precious metal.
Meantime, Northern Star will release its latest quarterly results on Wednesday 20 July.
Share price snapshot
The Northern Star share price has dropped nearly 34% in the past year, falling nearly 28% in the year to date.
For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has shed nearly 16% in the past year and 11% year to date.
Northern Star has a market capitalisation of about $7.9 billion based on the current share price.
