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Gold stocks have jumped

Following an 0.8% rise in the spot gold price overnight, a number of ASX-listed gold producers and explorers have surged higher in trading today.

The spot gold price rose 0.8% to US$1,255 an ounce as the US dollar continues to sink. The rise made it the biggest weekly gain in two months according to one news report.

Here’s a look at some of the ASX-listed gold miners.

Company Share Price Market Cap ($m) Price change
Troy Resources Ltd (ASX: TRY) $0.12 $54.8 14.3%
Alkane Resources Limited (ASX: ALK) $0.35 $176.8 4.5%
Millennium Minerals Ltd. (ASX: MOY) $0.19 $144.5 2.8%
Regis Resources Limited (ASX: RRL) $3.82 $1,913.9 2.7%
Northern Star Resources Ltd (ASX: NST) $4.36 $2,618.4 1.9%
Ramelius Resources Limited (ASX: RMS) $0.42 $219.6 1.7%
St Barbara Ltd (ASX: SBM) $2.54 $1,260.7 1.0%
Saracen Mineral Holdings Limited (ASX: SAR) $1.28 $1,037.5 1.2%
Resolute Mining Limited (ASX: RSG) $1.08 $793.7 1.1%
Newcrest Mining Limited (ASX: NCM) $19.78 $15,173.4 1.0%

Source: S&P Global Markets Intelligence, Google Finance

However, some analysts expect the gleaming metal to range trade at around this price, with the US Federal Reserve expected to raise interest rates.

If the US Central Bank does raise rates, investors are likely to switch from gold to bonds because they will be returning higher yields. The bank meets later this week and could raise interest rates then.

Foolish takeaway

Some investors view gold and gold stocks as insurance against a market crash, or interest rates falling. However, investors should realise that they are also taking on other risks if they buy shares in gold stocks rather than the commodity directly.

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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.