Why are ASX gold shares leaping today?

Gold prices jumped in the United States overnight.

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Key points

  • A number of ASX gold shares are on the rise today
  • Gold prices jumped in the United States overnight amid a suffering US dollar 
  • OceanaGold leapt nearly 8%, while multiple other gold miners jumped by more than 3%

The S&P/ASX 200 Resources Index (ASX: XJR) is leaping 1.71% today, and ASX gold shares are part of the trend.

Gold shares rising today include Evolution Mining Ltd (ASX: EVN), Northern Star Resources Ltd (ASX: NST), OceanaGold Corp (ASX: OGC), Silver Lake Resources Limited (ASX: SLR) and
Mako Gold Ltd (ASX: MKG) .

So what is impacting ASX gold shares today?

Gold prices

At the time of writing, OceanaGold Corp shares are up 7.95%, while Evolution Mining is leaping 4.88%. Silver Lake is jumping 3.86%, while Northern Star is climbing 3.43%, and Mako Gold is up 2.47%.

Gold prices jumped in the United States overnight due to the US dollar weakening and lower treasury yields, CNBC reported.

US gold futures leapt 1% to $1,885.60 an ounce, while spot gold climbed 0.7% to $1,866.39 an ounce on Tuesday.

Commenting on the gold prices, City Index UK senior market analyst Matt Simpson said:

The weaker dollar has helped gold break back above its 200-day average… and we're not yet convinced the greenback has seen a low.

Gold futures have since pulled back to $1,862 at the time of writing, but this is still the highest level since 9 May.

Meanwhile, Mako Gold today reported "exceptional drilling results" at the Gogbala Prospect in Côte d'Ivoire, West Africa. The company intersected high-grade gold mineralisation at 40 of 49 holes at the project.

In other news, OceanaGold released a sustainability report yesterday. President and CEO Gerard Bond described 2021 as a "remarkable year" both operationally and due to improving sustainability performance. The company aims to cut carbon emissions by 30% per ounce of gold by 2030.

Share price snapshot

OceanaGold Corp shares have surged 39% in the year to date, while Evolution Mining shares have slipped nearly 5%.

Silver Lake shares have descended 9% year to date, while Northern Star Resources have dropped 19%, and Mako Gold shares have slipped nearly 25%.

For perspective, the ASX 200 Resources Index has jumped nearly 11% year to date.

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 Scott Phillips.

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