ASX 200 Gold Shares Thriving Amidst Rising Gold Prices - Kalkine Media

November 17, 2023 07:09 PM AEDT | By Team Kalkine Media
Follow us on Google News:

The glittering allure of gold has once again cast its spell on investors as the precious metal continues its upward trajectory. The ASX gold shares are basking in the glow of rising gold prices, currently trading at US$1,984.00 (AU$3,067.41) per troy ounce. In this article, we will explore the factors driving the surge in gold prices and how three prominent ASX 200 gold shares, namely Northern Star Resources Ltd (ASX: NST), Regis Resources Ltd (ASX: RRL), and Evolution Mining Ltd (ASX: EVN), are capitalizing on this favorable market condition. 

Gold Price Surge 

Gold's recent climb to US$1,984.00 per troy ounce marks a 0.2% overnight increase and a notable 3.3% rise since the previous month. This upward momentum is proving beneficial for gold producers, offering support in what seems to be a challenging market for other sectors. 

ASX 200 Gold Shares Performance 

Let's take a closer look at the performance of the three leading ASX 200 gold shares in today's market and over the past month: 

  • Northern Star Resources Ltd (ASX: NST): 
  • Up 3.5% today 
  • Up 3.9% in the last month 
  • Up 2.6% today 
  • Up 11% in the last month 
  • Up 5.1% today 
  • Up 9.4% in the last month 

In contrast, the ASX 200 itself has experienced a marginal decline of 0.2% over the past month. 

Driving Forces Behind Gold Prices 

Several factors contribute to the buoyancy in the gold market: 

  1. Geopolitical Tensions:

The ongoing conflict in the Middle East, particularly highlighted by the recent Hamas terror attack on Israel, has triggered a classic haven status for gold. The metal's price surged by 8.2% since the attack on October 7. 

  1. Central Bank Policies:

With major central banks signaling a potential end to the rapid cycle of interest rate increases, investors are turning to gold as a safe-haven asset. Gold tends to struggle amid high and rising interest rates, making the current environment conducive for its appreciation. 

  1. Inflation Outlook:

Stable Consumer Price Index (CPI) and falling Producer Price Index (PPI) figures in the United States, particularly in October, have supported the gold prices. The expectation that inflation will continue to recede adds to the optimism surrounding gold. 

Central Bank Buying: 

  • The World Gold Council's Q3 Gold Demand Trends report highlighted "robust" central bank buying, maintaining a historic pace. This steady demand has contributed to a 8% increase in quarterly gold demand compared to the five-year average. 

Future Outlook 

Louise Street, senior markets analyst at the World Gold Council, suggests a positive outlook for the gold market. With geopolitical tensions on the rise and expectations of continued robust central bank buying, gold demand may surprise to the upside. 

In conclusion, the thriving performance of ASX 200 gold shares amidst rising gold prices showcases the resilience and attractiveness of the precious metal in times of uncertainty. 


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.



Top ASX Listed Companies

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK