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ASX gold shares are posting another strong day of outperformance.
The All Ordinaries Index (ASX: XAO), down 0.8% in morning trade, has bounced to a 0.2% gain at lunchtime. This follows on intraday news that the Aussie economy grew by a stronger than expected 3.4% in the fourth quarter of 2022.
But ASX gold shares are still broadly beating the benchmark.
At time of writing the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is up 1.9%. Reflecting gold's haven status, the ASX Gold Index slipped from its 3.1% gains earlier today on the strong GDP figures.
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Why are ASX gold shares outperforming today?
As you'd expect, ASX gold shares tend to perform much better when gold prices are high. And gold prices have been soaring amid the combination of increasing inflation concerns and geopolitical instability following Russia's invasion of Ukraine.
While bullion slipped over the past hours from US$1,945 to US$1,932 per troy ounce, it's well up from the US$1,908 per ounce it was trading for on 28 February. And the yellow metal remains 7.3% above its 1 February level of US$1,801 per ounce.
Commenting on the forces driving gold prices higher, and helping ASX gold shares outperform again, Gary Dugan, CEO of Global CIO Office said (quoted by Bloomberg):
The whole crisis has gone to a level that we couldn't have believed, and investors are no longer saying we'll buy some defensive stocks or bonds. It's now about buying gold especially against the backdrop of inflation risks that have been made worse by the conflict.
Yeap Jun Rong, a strategist at IG Asia added:
Gold may continue to outperform other haven assets, with an added tailwind from central bank purchases and also displaying its characteristic as an inflation hedge. The conflict has not seen any signs of easing and further escalation may heighten risks of persistent inflationary pressures, which will continue to draw traction for gold prices.
4 outperforming gold miners
We can't cover all of the ASX gold shares here, but below are 4 that are handily beating the index today.
With gold high on global investors' radars, the Newcrest Mining Ltd (ASX: NCM) share price is up 1.3%.
S&P/ASX 200 Index (ASX: XJO) listed Evolution Mining Ltd (ASX:EVN) is also charging higher, up 2.2%, while the Northern Star Resources Ltd (ASX: NST) share price is up 1.6%.
Leading the pack of ASX gold shares today is AngloGold Ashanti CDI (ASX: AGG). The Anglogold share price is up 7.7%.
