The Northern Star Resources Ltd (ASX: NST) share price is gaining ground over the ASX 200 on Wednesday.
At the time of writing, shares in Australia's second-largest gold miner are up 0.56% to $7.15.
In comparison, the S&P/ASX 200 Index (ASX: XJO) is in the red by 0.82% to 6,443.2 points.
Let's take a look at why Northern Star shares are beating the ASX 200 today.
What's going on with Northern Star shares?
Investors are bidding up the Northern Star share price after falling to a 2-month low of $6.93 yesterday.
Gold prices have tumbled in the past couple of weeks, hitting a low of around US$1,620 per ounce.
This is a big difference to when the yellow metal was trading above US$2,000 in March when Russia invaded Ukraine.
With the US Fed Reserve raising interest rates aggressively to combat inflation, this put pressure on the gold price.
Consequently, investors traditionally rush to US government bonds as they are considered a safe investment class. Currently, the US two-year treasury bond is swapping hands at a 15-year high of 4.23%.
However, with Northern Star shares trading at attractive levels, it appears investors are seizing up the buying opportunity.
In addition, the company commenced its $300 million share buyback on 15 September which is also likely providing support.
While Northern Star shares are remaining stable for now, it is relatively dependent on the US Fed's next move.
The central bank is next due to meet at the start of November to decide upon if interest rates will rise again.
Of course, this will be based upon the economic data and inflation numbers that flow through from now until then.
Northern Star share price summary
After sinking 7% in a week, the Northern Star share price is down by 24% in 2022.
This means it's almost 60% off the all-time high of $17.03 achieved on 9 November 2020.
Based on today's price, Northern Star commands a market capitalisation of approximately $8.28 billion.
