The De Grey Mining Limited (ASX: DEG) share price is shining on Thursday.
At the time of writing, shares in the gold miner are ascending 8.21% to $1.055. This means the share is now up more than 13% since the start of the week.
Let's take a look at what's catapulting the company's shares today.
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Why are De Grey shares in fine form today?
The sharp acceleration of gold prices overnight has boosted investor sentiment leading investors to snap up De Grey shares.
Gold prices recovered lost ground on Wednesday as the US dollar fell from its highest valuation since May 2002.
In addition, US bond yields retraced with the 10-year note sinking more than 25 basis points to 3.75%.
This has sparked confidence in the yellow metal as the Federal Reserve could slow down its aggressive monetary tightening policy.
The US central bank is cautious not to induce a recession to tackle the runaway inflation, particularly after 3 consecutive rate hikes.
However, this is dependent on the economic data that gets released from here until the start of November.
If inflation gets too hot, then the US Fed won't have much of an option but to raise interest rates again.
Should this happen, the price of the precious metal will get dragged down.
Currently, the price of gold has rebounded toward US$1,657 an ounce, an increase of almost 1.63% in the past day.
The Fed Reserve is scheduled to meet on 1-2 November to decide if interest rates remain the same or are elevated.
What do the brokers think of the De Grey share price?
A number of brokers rated the De Grey share price with different price points earlier this month.
According to ANZ Share Investing, the team at UBS raised its 12-month price target by 4.5% to $1.15 apiece.
Based on the current share price, this implies an upside of 9% for investors.
On the other hand, Macquarie and Bell Potter both had a bullish outlook on De Grey shares.
The brokers bumped up their price targets by 3.1% to $1.65, and 9.4% to $1.97, respectively.
From where De Grey trades today, this implies an upside of around 56% and 86%.
