Australian gold miners saw their share prices tumble yet again in early trading today, after the spot gold price fell 2.5% to US$1,227 an ounce.
In the lead-up to the US election, the gold price had soared but has since slumped 8% from its most recent peak.
The prospect of higher interest rates – at least in the US – and higher economic growth despite Donald Trump's election as president have conspired against gold and made other assets more attractive. Bonds are now more appealing to investors with the prospect of higher interest rates, and economic growth could spark higher inflation – so there's less reason for investors to hold gold. The metal is often seen as one of the best hedges against inflation.
News that legendary hedge fund manager Stanley Druckenmiller had sold all his gold holdings – roughly a third of his portfolio – on the day of the election has also pricked the interest of investors.
That's why the performance of the ASX-listed gold miners looks like this today:
| Company | Share Price | Market Cap ($m) | Price move |
| Beadell Resources Ltd (ASX: BDR) | $0.38 | $404.0 | -10.1% |
| Perseus Mining Limited (ASX: PRU) | $0.54 | $554.9 | -8.5% |
| Resolute Mining Limited (ASX: RSG) | $1.28 | $947.0 | -7.9% |
| Metals X Limited (ASX: MLX) | $1.45 | $878.6 | -7.4% |
| EVOLUTION FPO (ASX: EVN) | $2.11 | $3,468.4 | -7.5% |
| Saracen Mineral Holdings Limited (ASX: SAR) | $1.11 | $891.9 | -7.5% |
| Blackham Resources Ltd (ASX: BLK) | $0.60 | $171.5 | -6.7% |
| Millennium Minerals Ltd. (ASX: MOY) | $0.28 | $214.8 | -6.8% |
| Northern Star Resources Ltd (ASX: NST) | $3.87 | $2,321.1 | -6.9% |
| Newcrest Mining Limited (ASX: NCM) | $21.11 | $16,185.8 | -6.1% |
| Gold Road Resources Ltd (ASX: GOR) | $0.63 | $543.5 | -5.3% |
| St Barbara Ltd (ASX: SBM) | $2.37 | $1,178.7 | -6.3% |
| Doray Minerals Limited (ASX: DRM) | $0.50 | $180.2 | -4.7% |
| OceanaGold Corporation (ASX: OGC) | $3.39 | $2,043.3 | -5.3% |
| Ramelius Resources Limited (ASX: RMS) | $0.44 | $228.5 | -5.4% |
| Silver Lake Resources Limited. (ASX: SLR) | $0.52 | $262.9 | -6.0% |
| Alkane Resources Limited (ASX: ALK) | $0.55 | $275.3 | -5.2% |
Source: Google Finance
Much will depend on the actions of new president Donald Trump and the US government. One thing Mr Trump has been concerned about was that the US Federal Reserve needs to raise rates and at a faster pace.
That could signal a massive crash in gold prices – and ASX-listed gold miners could follow.
