The gold price continues to reach new highs (in Aussie dollar terms), breaking through the $2,000 per ounce mark for the first time in history this week.
Although the price of gold in its native US dollar has seen higher levels before, at the time our dollar was above parity and this meant that gold was cheaper in our dollars. The times have changed though – our Aussie dollar is now buying around 69 US cents and this has pushed the price in which Australians have to pay for an ounce to its highest level ever.
In US dollar terms, gold is trading for around US$1,390 per ounce, which is up nearly 10% over last month's levels, where gold was sitting around US$1,270.
So let us take a look at how the ASX gold miners have been affected by these movements at open today
How has the gold price surge affected the ASX gold miners?
The Newcrest Mining Limited (ASXL NCM) share price closed yesterday at $31.78 – a new 52-week high and Newcrest's highest level since December 2011. Newcrest shares are up almost 50% YTD and will no doubt continue to climb if the gold price does the same.
Northern Star Resources Ltd (ASX: NST) is also making new highs, with yesterday's close of $11.69 Northern Star's highest share price ever. Northern Star shares are up over 10% in a week, 26% in a month and nearly 80% since this time last year – not a bad performance to say the least. As with Newcrest, with gold making new highs and Northern Star having significant Australian operations, the share price might be making new all-time highs for a while yet.
Evolution Mining Ltd (ASX: EVN) joins its stablemates in making record highs, with Evolution shares trading at the highest level since 2004 at $4.39 at close yesterday. Evolution shares are up nearly 67% since this time last year and also have a bright future ahead (at least in the short term).
Foolish takeaway
Gold is definitely going to be an interesting area to watch over the coming months, especially if the gold price continues to rocket upward. Gold is still a while away from its all-time high in US dollar terms, so this might just be the start of something bigger.
