The Australian share market may have dropped notably lower this morning, but one group of shares that is enjoying this market volatility is the gold miners.
Strong gains have been seen across the gold miner industry today, leading to the S&P/ASX All Ords Gold index rising an impressive 3.7% this morning.
Here is the state of play in the industry today:
- The Evolution Mining Ltd (ASX: EVN) share price has pushed over 2.5% higher.
- The Newcrest Mining Limited (ASX: NCM) share price is up 3.5%.
- The Northern Star Resources Ltd (ASX: NST) share price has climbed almost 4% higher.
- The OceanaGold Corp (ASX: OGC) share price has risen 3%.
- The Regis Resources Limited (ASX: RRL) share price has surged 6% higher.
- The Resolute Mining Limited (ASX: RSG) share price has climbed 4.5%.
- The Saracen Mineral Holdings Limited (ASX: SAR) share price has jumped 6% higher.
- The St Barbara Ltd (ASX: SBM) share price is up almost 4.5%.
Why are the gold miners storming higher?
Investors have been fighting to get hold of the gold miners this morning after the gold price finished the week on a very positive note.
According to CNBC, the spot gold price rose 1.4% to a seven-week high of US$1,310.20 an ounce on Friday.
The good news for the gold miners is that the precious metal has continued its ascent in Asian trade on Monday. At the time of writing the spot gold price has risen a further 0.2% to US$1,313.80 an ounce.
This rise has been driven by a number of factors including global trade war concerns after President Trump threatened Mexico with tariffs, U.S. recession fears, and speculation that the U.S. Federal Reserve could be on the verge of cutting interest rates.
The combination of these factors and volatility in the share market has sent many investors to safe haven assets, much to the delight of shareholders of gold miners.
Overall, it is times like these that demonstrate why having a little exposure to gold can often be a good thing for a portfolio.
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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.