Here’s why the Newcrest (ASX:NCM) share price is underperforming

The Newcrest Mining Ltd (ASX: NCM) share price is having a fun day today. Newcrest shares are up 1.07% at the time of writing to $26.51 a share. But that doesn’t paper over the last few months. The Newcrest share price is down more than 17% over the past year, and almost 28% since early August.

On one hand, one might be able to explain this move by a commensurate fall in the price of gold. Price movements of a resources companies’ underlying commodity are normally what’s to blame for these kinds of moves.

And looking at the gold price, it has been in a downward spiral since August. That was when gold broke it’s all-time high and climbed over US$2,000 an ounce for the first time. Since then, gold has retreated somewhat and…