Australian gold stocks have soared, after yet another set of weak US economic data was released overnight.
A report showed that US service industries expanded at the slowest pace in six years saw the probability of the US Federal Reserve raising rates this month sink to 24%. That's despite chair Janet Yellen announcing last week that the case for raising rates had 'strengthened', and weaker than expected manufacturing data.
Several analysts and market commentators suggest that as much as the US Fed wants to start lifting rates, it can't really do that unless there's economic data that shows the economy is strong enough to support it.
If and when the US does finally start lifting interest rates, that will be bad news for gold and gold stocks. But until the music stops, gold shares will keep on dancing.
Here are today's early moves.
| Company | Last Price | Market Cap ($m) | Gain |
| West African Resources Ltd (ASX: WAF) | $0.36 | $172.4 | 18.0% |
| OceanaGold Corporation (ASX: OGC) | $4.98 | $93.6 | 11.4% |
| Saracen Mineral Holdings Limited (ASX: SAR) | $1.50 | $1,205.3 | 10.7% |
| Beadell Resources Ltd (ASX: BDR) | $0.41 | $433.6 | 6.5% |
| Gold Road Resources Ltd (ASX: GOR) | $0.66 | $573.5 | 8.2% |
| Alacer Gold Corp – CDI (ASX: AQG) | $3.44 | $237.0 | 8.2% |
| Cardinal Resources Ltd (ASX: CDV) | $0.56 | $166.6 | 8.7% |
| Ramelius Resources Limited (ASX: RMS) | $0.51 | $267.9 | 7.4% |
| Northern Star Resources Ltd (ASX: NST) | $4.44 | $2,666.4 | 6.2% |
| Perseus Mining Limited (ASX: PRU) | $0.54 | $548.0 | 5.9% |
| EVOLUTION FPO (ASX: EVN) | $2.51 | $3,860.0 | 5.9% |
| Resolute Mining Limited (ASX: RSG) | $2.10 | $1,383.7 | 3.5% |
| Dacian Gold Ltd (ASX: DCN) | $3.81 | $508.4 | 4.5% |
| Newcrest Mining Limited (ASX: NCM) | $23.35 | $17,898.0 | 3.3% |
Source: Google Finance
The spot gold price gained 2% overnight to US$1,353.40 a tonne. At the current exchange rate of US 76.7 cents, Australian gold miners are receiving around A$1,764 an ounce. With all-in sustaining costs of between A$1,000 and A$1,100 an ounce, they are making huge margins.
No wonder the market is pushing the shares higher.
