Australian Gold Stocks Sub-Index Reaches New Highs Amid Rate Cut Hopes

July 12, 2024 03:25 PM AEST | By Team Kalkine Media
 Australian Gold Stocks Sub-Index Reaches New Highs Amid Rate Cut Hopes
Image source: shutterstock.com

The sub-index of Australian gold stocks (INDEXASX: XGD) surged as much as 3.23% on Friday, reaching its highest level since 22 May 2024. This marks the ninth consecutive session of gains, positioning the sub-index for a remarkable 6.6% weekly gain, the best in four months if the trend continues.

Gold Prices Drive Rally

The recent rally in gold stocks is primarily driven by a significant jump in gold prices. On Thursday, gold prices soared more than 2% and remained steady early on Friday. This increase was fuelled by cooler-than-expected U.S. Consumer Price Index (CPI) data, which has sparked hopes that the Federal Reserve might start cutting interest rates as early as September. The prospect of lower rates tends to boost gold prices, as it reduces the opportunity cost of holding the non-yielding asset.

Notable Performers in the Gold Sector

Several key players in the Australian gold sector have seen significant gains. Northern Star Resources (ASX: NST) jumped 3.8%, reaching its highest level in three weeks. ASX-listed shares of Newmont Corp (ASX: NEM) advanced 3.6%, hitting an all-time high. Resolute Mining (ASX: RSG) experienced a substantial rise of 5.8%, reaching its highest level since February 2021. Similarly, Evolution Mining (ASX: EVN) climbed 3.7%, marking a more than one-month high.

Comparative Performance

As of the last close, the XGD has risen 5.8% this year, outpacing the benchmark index (INDEXASX: XJO), which has gained 3.9% over the same period. This strong performance underscores the robust investor confidence in the gold sector, driven by favorable economic conditions and optimistic market sentiment regarding potential rate cuts.

 


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.


AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
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.