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Why Newcrest, Northern Star, & these ASX gold miners charged higher today

The S&P/ASX 200 index may be sinking lower today, but not all shares have tumbled with it.

One area of the market that is storming higher is the gold miner industry. At the time of writing the S&P/ASX All Ords Gold index is up a sizeable 2.2% compared to a 0.65% decline by the benchmark index.

Here’s a quick summary of how the gold miners are performing today:

The Evolution Mining Ltd (ASX: EVN) share price is up 2.7% to $4.93.

The Newcrest Mining Limited (ASX: NCM) share price has risen 1.9% to $37.65.

The Northern Star Resources Ltd (ASX: NST) share price has pushed 1.5% higher to $11.85.

The Regis Resources Limited (ASX: RRL) share price is up 1% to $4.92.

The Saracen Mineral Holdings Limited (ASX: SAR) share price has climbed 2% to $3.70

The St Barbara Ltd (ASX: SBM) share price has risen 2% to $3.16.

Why are the gold miners pushing higher today?

Investors have been buying the gold miners today after the spot gold price charged to a three-week high overnight.

According to CNBC, increased demand for safe haven assets sent the spot gold price a further 0.45% higher to US$1,538.60 an ounce.

The catalyst for this was a return of trade war concerns and news of an impeachment inquiry into President Trump due to allegations over abuses of power.

In respect to the latter, the House of Representatives Speaker, Nancy Pelosi, said: “The actions of the Trump presidency revealed the dishonorable fact of the president’s betrayal of his oath of office, betrayal of our national security and betrayal of integrity of our elections.”

 “Therefore, today, I’m announcing the House of Representatives is moving forward with an official impeachment inquiry. I’m directing our six committees to proceed with their investigations under that umbrella of impeachment inquiry,” she added.

This relates to allegations that President Trump has pushed the Ukraine to investigate the family of former Vice President Joe Biden, who is one of his top rivals for the presidency in 2020.

On Twitter President Trump responded by saying: “Such an important day at the United Nations, so much work and so much success, and the Democrats purposely had to ruin and demean it with more breaking news Witch Hunt garbage. So bad for our Country!”

The market appears to agree with his final sentence, judging by the selloff of U.S. stocks overnight.

Whilst this is disappointing, I think it could be a buying opportunity for these top shares.

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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.

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