These two ASX 200 gold shares are slightly in the green today amid a volatile gold price.
The Evolution Mining Ltd (ASX: EVN) share price is pushing 3.03% higher today. Meanwhile, the Northern Star Resources Ltd (ASX: NST) share price is rising 0.51%.
Let's take a look at what is happening to the gold price.
Gold price rebounds and retreats
The Gold price rebounded strongly overnight to more than US$1940 per ounce before retreating. Trading economics data shows gold jumped to US$1744.78 per ounce from US$1709.14 before retreating back. Gold is now priced at US$1728.37 a tonne at the time of writing.
Spot gold recovered from its lowest level since August 2021, according to a Reuters report published on CNBC.
This followed news out of the US that inflation jumped 9.1% in June. Gold can be considered an inflation hedge, however, rate rises can also negatively impact the gold price.
In a note to clients cited by kito, CPM Group analysts said:
While in theory gold prices should benefit from higher inflation numbers, the reality is that these higher inflation figures suggest that the Fed is likely to become even more aggressive in rasing rates to quell strong inflation.
This is resulting in a stronger U.S. dollar versus other major currencies as well as placing a lid on future inflation expectations.
Share price snapshot
The Evolution share price has lost 51% in the past year, while it is falling 41% year to date.
Meanwhile, Northern Star shares have lost more than 34% in a year and 26% year to date.
In comparison, the S&P/ASX 200 Materials Index (ASX: XMJ) has fallen nearly 17% in a year and 11% year to date.
