The Northern Star Resources Ltd (ASX: NST) share price recently fell to the lowest level since 2018.
Northern Star shares are currently trading at $6.77, a 0.3% gain. However, on Friday the company's share price fell to $6.75. Northern Star shares were last trading at this low in late August 2018.
So what is happening to the Northern Star share price?
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Gold price falls
Gold prices fell again on Friday by 0.1% to US$1708.17 per ounce, as my Foolish colleague James reported this morning.
This was the fifth week in a row the gold price fell. Fears of interest rate rises appeared to be impacting the gold price.
Commenting on the gold price, TD Securities global head of commodity strategy Bart Melek said in comments cited by mining.com:
The set-up for a deep liquidation event in gold is building.
With gold bugs falling like dominoes, prices are now challenging pre-pandemic levels, raising risks that the largest speculative cohort in gold will start to feel the pain under a hawkish Fed regime
After hitting a five year high of US$2028 per ounce on 3 August 2020, the gold price has fallen nearly 16%.
Meanwhile, multiple analysts are positive on the future of the Northern Star share price. Macquarie has recently placed an $11 price target on the company's shares. Citi analysts have tipped the company's share price to rise up to $12.10.
In today's trade, the gold price is recovering slightly, up 0.22% to US$1707.40 per ounce according to CNBC.
Northern Star share price snapshot
The Northern Star share price has fallen 37% in the past year, while it is down more than 28% year to date.
For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has fallen nearly 20% in a year and 13% year to date.
Northern Star has a market capitalisation of nearly $7.9 billion based on the current share price.
