AUS
NZ
UK
CA
USA
IND
Highlights:
- Benchmark S&P/ASX 200 index closed sharply lower on Thursday, losing 2.02% to 6,845.60 points.
- Out of all the eleven significant sectors, 10 closed in red zone today. The Materials sector leads the list declining almost 5%.
Mining is one of the most significant and promising sectors in Australia. Majority of the Australian economy gets replenished by the mining industry of the country.
The S&P/ASX 200 Mining sector (INDEXASX:XMJ) was one of the worst performing sectors on ASX today. The sector closed at 15,410.1 points, down 4.864% or 787.9.4 points on ASX on 1 September 2022.
Here in this article, we will have primarily discussed about some leading ASX-listed gold stocks.
Why is gold in focus?
This article features five leading ASX-listed gold stocks, and all these stocks closed their respective trading sessions on weaker note on Thursday. These stocks are:
- Northern Star Resources Ltd (ASX:NST) with a market capitalisation of AU$9.18 billion.
- Evolution Mining Limited (ASX:EVN) with a market capitalisation of AU$4.38 billion.
- Newcrest Mining Limited (ASX:NCM) with a market capitalisation of AU$15.83 billion.
- Perseus Mining Limited (ASX:PRU) with a market capitalisation of AU$2.15 billion.
- Gold Road Resources Limited (ASX:GOR) with a market capitalisation of AU$1.37 billion.
It is commonly believed that investors often prefer investing in gold as it is used to hedge inflation. Furthermore, changes in interest rates impact the price of gold.
Therefore, the ASX-listed gold stocks might have been impacted by rising inflation, followed by the constant increase of interest rates in Australia.
How do inflation and interest impact the performance of ASX-listed gold stocks?
Inflation: The demand for gold tends to increase whenever a country experiences an economic crisis. Therefore, gold prices are likely to shoot up during the time of inflation and other economic crisis. Investors often use gold to hedge inflation. When every other business suffers from inflation, gold prices tend to rise and become profitable for those who hold gold in a long-term investment.
Interest rates: gold prices are also directly dependent on interest rates. When interest rates go up, and commodity prices increase, people mostly prefer selling gold. As a result, the supply of gold increases and hence, prices fall. On the other hand, when the interest rate decreases, gold prices tend to rise.
In Australia, the Reserve Bank (RBA) has been making constant efforts to raise the interest rate over the past couple of months in order to balance out inflation. Experts predict that the RBA will continue to hike interest rates in future as well. As a result, this factor might have influenced investors’ sentiments lately.
RBA is soon to conduct its monthly meeting in September to let us know more updates on interest rate hikes and inflation.
Image source: © Andreypopov | Megapixl.com
Price of gold today:
Gold was spotted trading at US$1718.15 per ounce as of 5:22 PM AEST today.
Let us have a brief look at the performance of the following ASX-listed gold stocks on ASX today:
Northern Star Resources Ltd (ASX:NST)
Leading gold miner and producer Northern Star Resources Ltd (ASX:NST) closed today’s trading in red zone on ASX. Northern Star’s share price stood at AU$7.45 per share, down 5.456%.
Northern Star’s share price declined by almost 24% on ASX over the last 12 months. On the other hand, Northern Star’s YTD-based share price fell approximately by 21% on ASX (as of 4:10 PM AEST today).
Evolution Mining Limited (ASX:EVN)
Renowned gold miner Evolution Mining Limited (ASX:EVN) shares marked a loss of 8.368% by the end of today’s trading session on ASX. Evolution’s share price stood at AU$2.19 per share on Thursday.
Over the last one year, Evolution’s share price fell significantly by almost 44% and on YTD-basis, the stock has declined by over 46% on ASX.
Newcrest Mining Limited (ASX:NCM)
Leading gold exploration company Newcrest Mining Limited (ASX:NCM) closed today’s trading session on a negative note. Newcrest’s share price marked a loss of 4.060% to AU$17.010 per share by the end of Thursday’s trading session on ASX.
In last one year, Newcrest’s share price declined by 31% on ASX. Furthermore, Newcrest’s YTD-based share price fell by 30.54% on ASX today.
Image source: © Danieloizo | Megapixl.com
Perseus Mining Limited (ASX:PRU)
Notable mining company Perseus Mining Limited (ASX:PRU) closed trading in the red zone today. The gold miner marked a loss of 12.73% and its share price stood at AU$1.44 per share by the end of today’s trading session.
Perseus’s share price has registered a loss of 5.26% on ASX in last 12 months. On the other hand, the gold miner’s YTD-based share price declined by almost 13% as of today (1 September).
Gold Road Resources Limited (ASX:GOR)
Gold explorer and miner Gold Road Resources Limited (ASX:GOR) closed trading significantly lower by 4.313% on ASX today. Gold Road’s share price stood at AU$1.22 per share by the end of Thursday’s trading session on ASX.
In the span of the last 12 months, Gold Road’s share price has declined by 3.71% on ASX. Moreover, Gold Road’s YTD-based share price fell by almost 23% on ASX (as of 1 September 2022).
