Tensions Rise, Gold Slips: Elliott Takes Aim at Northern Star

Ved Shah

Ladies and gentlemen, The Australian Gold Weekly Review returns with another episode as precious metals continue to face pressure amid renewed geopolitical uncertainty. Gold remains near US$4,300 an ounce while silver trades around US$68 an ounce following a minor escalation between the United States and Iran. While the conflict itself remains contained, investors have become increasingly concerned that inflationary pressures could persist for longer than previously expected, raising fears of interest rate hikes and weighing on precious metals sentiment.

Oil tells a similar story.

Crude oil finishes the week at US$93 per barrel as markets continue to price the possibility of an extended disruption to shipping through the Strait of Hormuz. Although the escalation has been relatively minor, investors appear to believe the waterway could remain restricted for longer than initially anticipated, supporting higher energy prices and reinforcing inflation concerns across global markets.

The ASX All Ordinaries Gold Index has not escaped the selling pressure either. The index slipped below 16,000 points for the first time in quite some time, largely mirroring weakness in the gold price as investors reassessed expectations for inflation, interest rates, and commodity markets more broadly.

But while macroeconomic developments dominated headlines, one corporate story captured significant attention across the Australian gold sector.

Elliott Management, the activist investment firm managing approximately A$112 billion globally, disclosed a stake worth well over A$1 billion in Northern Star Resources, making it one of the company's largest shareholders. Its presentation highlighted 203% total return underperformance relative to peers over the past three years, alongside four separate guidance reductions during the first three months of 2026 alone.

And that is exactly where this week's discussion begins. Given the recent price weakness in a major stock like Northern Star Resources, is the risk-reward good enough to finally look into the stock? Brian breaks it down.