The market may be sinking lower again on Monday in response to heavy declines in the United States on Friday, but one group of shares that hasn’t let that hold it back is the gold miners.
At the time of writing the S&P/ASX All Ords Gold (Index: ^AXGD) (ASX: XGD) is up 2% to 4,926 points, compared to the benchmark S&P/ASX 200’s 0.5% decline.
The catalyst for this gain has been a jump in the gold price due to investors switching to risk off and safe haven assets.
At the time of writing the spot gold price is at US$1,346 an ounce, up almost 1.5% since President Trump made his tariff announcement.
Here is the state of play in the gold industry at the time of writing:
- The Blackham Resources Ltd (ASX: BLK) share price is up 2.5% to 8.3 cents.
- The Evolution Mining Ltd (ASX: EVN) share price has climbed over 2% to $3.12.
- The Newcrest Mining Limited (ASX: NCM) share price is up 2% to $20.26.
- The Northern Star Resources Ltd (ASX: NST) share price has pushed 2.5% higher to $6.96.
- The OceanaGold Corp (ASX: OGC) share price is up 2.5% to $3.64.
- The Resolute Mining Limited (ASX: RSG) share price has climbed 2% to $1.30.
- The Regis Resources Limited (ASX: RRL) share price is up 1.5% to $4.62.
- The St Barbara Ltd (ASX: SBM) share price has pushed over 1.5% higher to $4.14.
Should you invest?
While I do think that having a little exposure to gold can be good for portfolios and offer some protection from volatile market events like we are experiencing today, I’m just not sure that now is the time to invest.
I expect Trump’s tariff plans have been announced to put him in a better bargaining position with China and expect the whole thing will soon blow over.
This could lead to the gold price giving back its recent gains and then potentially even sinking significantly lower when U.S. interest rates rise and the yields on risk-free treasury bonds widen.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 Scott Phillips.