Why are ASX 200 gold shares rocketing today?

Investors are turning to bullion over increasing geopolitical fears.

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a man wearing a gold shirt smiles widely as he is engulfed in a shower of gold confetti falling from the sky. representing a new gold discovery by ASX mining share OzAurum Resources

Image source: Getty Images

Key points

  • ASX 200 gold shares are topping the leader's board today
  • Investors eyeing potential Russian aggression are seeking haven assets
  • Bullion is glittering brightly

The S&P/ASX 200 Index (ASX: XJO) has managed to shrug off its earlier losses to be up 0.21% in late afternoon trading.

But ASX 200 gold shares are having a much better day. In fact, 3 of the top performing shares on the index today are gold miners with other ASX 200 gold shares not far behind.

Keeping it with the top 3, the Ramelius Resources Ltd (ASX: RMS) share price is up 6.88% at time of writing.

Meanwhile, Regis Resources Ltd (ASX: RRL) shares have gained 7.17%.

And rival ASX 200 gold share Evolution Mining Ltd (ASX: EVN) is also up 7.22%.

And remember, these companies all have market caps well north of $1 billion.

The price of gold

While many factors come into play to determine a company’s share price, ASX 200 gold miners are certainly benefiting from a rising gold price.

On 31 January, the yellow metal was trading for US$1,797 per troy ounce. Today, that same ounce is worth US$1,853, up some 3%.

Friday saw bullion post its biggest daily gain in four months as investors digested the news that a Russian invasion of Ukraine is looking increasingly likely and sought out the haven asset.

While we can only hope wiser heads prevail, US officials have been sounding the alarm bell.

On Sunday, US National security adviser Jake Sullivan told CNN:

We cannot perfectly predict the day, but we have now been saying for some time that we are in the window, and an invasion could begin, a major military action could begin by Russia in Ukraine any day now – that includes this coming week, before the end of the Olympics.

How have these 3 ASX 200 gold shares been tracking?

The ASX 200 is down 4.8% so far in 2022.

By comparison, the Evolution Mining share price is down 3.8%; the Ramelius Resources share price is down 4.4%; while the Regis Resources share price is up 3.1%.

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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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