Why ASX 200 gold shares are sinking on Friday

These Aussie gold miners are seeing their values slump on Friday

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The S&P/ASX 200 Index (ASX: XJO) is falling lower towards the end of the week and ASX 200 gold shares are among the losers. Shares in some of Australia's largest gold miners are sharply down amid falling commodity prices.

Red arrow on gold bars going down.

Image source: Getty Images

Why ASX 200 gold shares are sinking on Friday

Gold prices fell to a one-month low overnight, falling below US$1,800 per ounce. It came as demand for the US dollar rebounds with investors expecting a US Federal Reserve tapering program and rising US Treasuries yields.

That has been reflected in ASX 200 gold shares on Friday. The Newcrest Mining Ltd (ASX: NCM) share price has fallen 2.9% at the time of writing to $23.83 per share. Shares in the Aussie gold and copper miner are now trading 3.3% above their 52-week low of $23.08 per share.

Newcrest is far from the only gold producer under pressure in the final trading session of the week. The Northern Star Resources Ltd (ASX: NST) share price has slumped 3.9% to $9.17 per share on Friday. Northern Star shares are now down 31.1% since the start of the year.

Evolution Mining Ltd (ASX: EVN) hasn't been able to escape the losses either. The ASX 200 gold share is down 3.1% at the time of writing to $3.80 per share. That has seen Evolution's market capitalisation edge below $7 billion on Friday afternoon.

On the smaller end, Chalice Mining Ltd (ASX: CHN) shares have been hit hard. The Chalice share price is down 4.6% on Friday afternoon but remains up an impressive 377% in the past 12 months.

Foolish takeaway

A number of ASX 200 gold shares are under pressure on Friday. It looks as though tumbling gold prices amid stronger US dollar demand has hurt the commodity-based shares heading into the weekend.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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