Northern Star Resources Ltd shares surged 5.02% during intraday trading, driven by a rally in gold prices as declining oil prices eased inflation concerns and reduced expectations for U.S. interest rate hikes.

The broader Australian gold mining sector also advanced, with the sub-index rising as much as 2.6% to its highest level since late July. The decline in oil prices has tempered inflation fears, which typically supports gold as a safe-haven asset and benefits gold producers like Northern Star.

Adding to the positive momentum, Jefferies reiterated its "buy" rating on Northern Star with a price target of A$24, endorsing the company's investment in mill capacity at the Kalgoorlie Consolidated Gold Mine. The brokerage noted that the investment will support the asset for more than 30 years and expects the KCGM project to be a growth engine for the company, appropriately capitalized to double throughput.