Here's why ASX gold shares are having another stellar day

Gold prices have been rising on fears the Russian invasion of Ukraine could spiral out of control.

| More on:
A woman blowing gold glitter out of her hands with a joyous smile on her face.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • ASX gold shares outperform again today
  • Gold prices are up sharply since Russia's aggression against Ukraine began
  • Investors are seeking haven assets

A message from our CIO, Scott Phillips: "G'day Fools. If you're like us, you're dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So we'll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine."


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. 

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%. 

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.

More on Gold

A man standing in a red rock mine is covered by a sheet of gold blowing in the wind.
Gold

Why this ASX 200 gold stock is 'the BHP of gold mining'

The ASX 200 gold stock owns some of the top mining assets in the world.

Read more »

Rising price of gold represented by a share price chart and gold bars.
Gold

ASX 200 gold stocks in focus as gold price smashes record highs

The gold price has soared into new record territory. But why?

Read more »

rising gold share price represented by a green arrow on piles of gold block
Share Gainers

Guess which ASX gold stock just rocketed 92% on this 'outstanding' new discovery

Investor are snapping up the ASX gold stock as excitement over its gold and silver project surges.

Read more »

ETF written in yellow gold.
Gold

Should you buy ASX gold ETFs right now?

Is gold a 2024 fad or still a good long-term investment?

Read more »

rising gold share price represented by a green arrow on piles of gold block
Gold

Guess which ASX 200 gold stock is marching higher on a 'significant resource upgrade'

ASX 200 investors are bidding up the Aussie gold miner following a sizeable estimated resource increase.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Gold

2 under-the-radar ASX gold shares shining 11% brighter on Friday

These shares are having a golden finish to the week. But why?

Read more »

St Barbara share price Minder underground looks excited a he holds a nugget of gold he has discovered.
Gold

2 ASX gold shares making big news today (one up 300%!)

How is this ASX gold share up more than 300% right now?

Read more »

Calculator and gold bars on Australian dollars, symbolising dividends.
Gold

This ASX 200 gold stock can rise 30% and could be a takeover target

Bell Potter thinks investors should be snapping up this gold miner before it's too late.

Read more »