Kalkine: Gold Miners Sparkle as Geopolitical Tensions Drive Safe-Haven Demand

June 13, 2025 03:29 PM AEST | By Team Kalkine Media

Kalkine: Gold Miners Sparkle as Geopolitical Tensions Drive Safe-Haven Demand — Image source: Shutterstock

Gold Stocks Dominate ASX 200 Leaders

By mid-afternoon (2:40pm AEST), seven of the top 10 performing companies on the ASX 200 were gold-related stocks. Shares of Capricorn Metals (ASX:CMM) jumped 6.8%, leading the charge, followed closely by Bellevue Gold (ASX:BGL), which rose 5.7%, and Newmont Corporation (ASX:NEM), advancing 5.4%.

This significant upswing reflects the rapid pivot by market participants toward gold, widely regarded as a hedge during periods of geopolitical instability.

Spot Gold Surges Amid Flight to Safety

Spot gold rose 1.2%, reaching US$3,427 an ounce, according to data from Bloomberg. This rise marked a continuation of gold’s appeal as a resilient asset when broader equity markets face uncertainty. The move was further supported by a simultaneous uptick in other safe-haven currencies such as the US dollar, Japanese yen, and Swiss franc.

Geopolitical Fallout Fuels Market Anxiety

The catalyst for this investor shift was a fresh wave of hostilities between Israel and Iran. Israeli forces targeted strategic military and nuclear locations in Iran. In response, Israeli leadership emphasized that the operation would persist “for as many days as it takes to remove this threat.”

Iran’s military responded with equally strong rhetoric. In a national broadcast, the Iranian Armed Forces warned that Israel and the United States would receive a "harsh blow" in retaliation, heightening fears of a broader regional escalation.

Outlook: Gold in Focus as Volatility Persists

With the geopolitical landscape remaining volatile, attention is likely to stay on gold and related equities. Investors appear poised to maintain exposure to assets perceived as safer amid mounting uncertainty, which could sustain interest in ASX-listed gold miners.

The performance of companies such as Capricorn Metals (ASX:CMM), Bellevue Gold (ASX:BGL), and Newmont Corporation (ASX:NEM) underscores the market’s swift reaction to global developments and reinforces gold’s status as a strategic asset during times of geopolitical stress.

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