Gold stocks soar: Is there more to come?

The S&P/ASX 300 (Index: ^AXKO) (ASX: XKO) might be down 0.8% at 5,339.9 points, but it’s not because of the gold miners, which have staged a huge rally today.

As the table below shows, gold miners are in positive territory as the S&P/ASX All Ords Gold (Indexasx: XGD) (ASX: XGD) gains 3.4%.

Company Price Market Cap Gain
Perseus Mining Limited (ASX: PRU) $0.51 $93.6 9.0%
Medusa Mining Limited (ASX: MML) $0.67 $139.2 8.9%
Resolute Mining Limited (ASX: RSG) $1.90 $286.0 7.6%
Beadell Resources Ltd (ASX: BDR) $0.38 $397.8 7.7%
Millennium Minerals Ltd. (ASX: MOY) $0.32 $245.9 6.6%
EVOLUTION FPO (ASX: EVN) $2.28 $3,359.6 6.3%
Saracen Mineral Holdings Limited (ASX: SAR) $1.34 $1,080.3 5.9%
Regis Resources Limited (ASX: RRL) $3.83 $1,912.8 5.4%
Alkane Resources Limited (ASX: ALK) $0.31 $151.5 5.2%
St Barbara Ltd (ASX: SBM) $2.91 $1,449.7 4.9%
Troy Resources Ltd (ASX: TRY) $0.42 $143.1 5.0%
OceanaGold Corporation (ASX: OGC) $4.39 $2,669.7 4.7%
Ramelius Resources Limited (ASX: RMS) $0.49 $254.7 4.3%
Northern Star Resources Ltd (ASX: NST) $4.12 $2,474.2 2.7%
Newcrest Mining Limited (ASX: NCM) $22.30 $17,089.4 2.8%

Source; Google Finance

The Spot gold price didn’t surge overnight, despite the gains today, instead gaining 0.4% to close at around US$1,314 an ounce overnight.

More gains could be on the way, with US nonfarm payroll data out tonight, and expected to set the tone for gold and other assets. The US Federal Reserve is keen to start raising interest rates, but will likely want a solid employment report to help justify the move.

Foolish takeaway

Sooner or later, the US is going to start raising interest rates – which will have a negative impact on gold prices and the share prices of gold miners like those listed above. It doesn’t pay to play chicken with the US Fed.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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