Although the market has dropped lower today, it hasn't stopped the gold miners from storming higher.
In early afternoon trade the S&P/ASX All Ords Gold (Index: ^AXGD) (ASX: XGD) is up a solid 1.3%.
Some of the biggest movers amongst the gold miners today include the Beadell Resources Ltd (ASX: BDR) share price, the St Barbara Ltd (ASX: SBM) share price, the Regis Resources Limited (ASX: RRL) share price, and the Alkane Resources Limited (ASX: ALK) share price.
Each of these shares has climbed no less than 2% higher, with Alkane Resources a particular highlight with its 10% gain.
Why are the gold miners higher?
According to Reuters, overnight the gold price climbed to a three-week high after European Central Bank President Mario Draghi advised that policymakers plan to discuss potential changes to its bond-buying scheme in the European autumn.
This helped lift the euro to a 14-month high, causing the U.S. dollar, which gold is priced in, to tumble lower once again. The U.S. dollar index is now at an 11-month low.
At the time of writing, the spot gold price is fetching US$1,245 an ounce, up around 2.3% since this time last week.
Is now the time to invest in the gold miners?
Whilst there is a question mark over the pace of interest rate rises in the United States following recent weaker-than-expected economic data, I still wouldn't be in a rush to invest in the gold miners.
I expect there to be at least two to three rate rises in the United States over the next 12 months, which should result in a stronger U.S. dollar and ultimately a weaker gold price.
But if you're not as positive on U.S. rate rises as I am and expect the gold price to continue to climb higher, you could do a lot worse than an investment in either Newcrest Mining Limited (ASX: NCM) or Resolute Mining Limited (ASX: RSG).
