Trump's US/China trade war is lighting a fire under the best ASX gold shares again

Gold hits US$1,453/oz overnight.

Tom Richardson

Tom is a holder of the CFA Society of the UK administered Investment Management Certificate (IMC) and has more than a decade's professional experience in the investment management industry in Australia and the UK. Tom now works as a writer and editor for TMF Australia and has two easy to remember rules of investing he likes to follow. Avoid overpaying for growth stocks and avoid paying at all for stocks that are cheap for a reason. Tom prefers growth investing over value investing and says it's not rocket science, just avoid overpaying for the best returns.

Published August 2, 2019 11:58 am AEST

The gold price touched a multi-year high of US$1,453/oz overnight with the Australian dollar also giving up ground versus the U.S. dollar to put a rocket up the best ASX gold miners this morning.

Resolute Mining Limited (ASX: RSG) is up 11%, Newcrest Mining Limited (ASX: NCM) is up 6.1%, St Barbara Ltd (ASX: SBM) is up 6.5%, Saracen Resources Ltd (ASX: SAR) is up 9.4% (ASX: SAR) and Evolution Mining Ltd (ASX: EVN) is up 6.6%.

Check out how gold is covering the S&P/ ASX200 (ASX: XJO) leaderboard this morning.

Source: ASX website, Aug 2, 2019.

The AUD gold price is now sitting around A$2,135/oz to mean some local gold miners will be printing net profit margins close to A$1,000 per ounce of gold sold. No wonder shares have been on a tear over the past 12 months.

Moreover, there's always the potential for the gold price to move much higher if the US/China trade dispute balloons and sends more investors into gold as a traditional 'safe haven' trade.

The gold price can move in mysterious ways though, and I am not a buyer of gold proxies myself.

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