Gold prices continue to surge after finding a bottom last month. The yellow metal now trades at US$1,791 per troy ounce.
A wave of macroeconomic crosscurrents is lifting the gold price this month after traders had sold it down to 52-week lows.
Gold prices climbed more than 1% to hit a fresh one-month peak on Thursday. According to Reuters, this “was underpinned by a retreat in the dollar and U.S. Treasury yields, as investors kept a close tab on U.S.-China tensions”.
With the relief rally in place, these three ASX gold miners have opened the session in the green on Friday.
OceanaGold Corp (ASX: OGC)
Shares of OceanaGold are up more than 8% higher on Friday and now trade at $2.61 apiece on no news.
After a period of heavy downside since April, the company’s shares have bounced from three-month lows as trading volume surges to around three times the four-week average.
On 29 July, the company released its second-quarter financial report, showing a period of sales growth.
The company reported revenue for the six months ended 30 June 2022 increased by 55.4% over the comparative period last year. This was “due mainly to higher sales volumes and higher average gold and copper price,” OceanaGold said.
“Net profit after tax [NPAT] for the six months ended 30 June 2022 was $98.0 million compared to $47.4 million for the same period in 2021,” it added.
This year to date, the OceanaGold share price has clipped a 12% gain.
Bellevue Gold Ltd (ASX: BGL)
Shares in Bellevue Gold have pushed 5.42% higher today and now trade at 87.5 cents apiece. Certainly, the gold price looks to have helped Bellevue shares today.
The company released its second-quarter report in July where it said it had significantly de-risked its Bellevue Gold Project in WA by locking in 90% of pre-production capital under contract.
Moreover, with exploration and capital expenditure in the gold sector heating up, “[e]merging producers like Bellevue could be on the menu for the big producers,” Livewire notes.
Despite the updates, the Bellevue share price has slipped more than 17% into the red over the past 12 months to date.
Ramelius Resources Ltd (ASX: RMS)
Shares of Ramelius are another gold play that has spiked more than 5% in today’s session at the time of writing.
Investors have bid the Ramelius share price 5.5% higher on no news, with the gains looking to be correlated to sector strengths today.
After several months of downturn, the stock has caught a bid since 30 June. This is curious, as sentiment was poor following the release of the company’s production update a week earlier.
The company reported its “gold production for FY22 will fall marginally short of the current guidance range”.
Nevertheless, with the price of gold strengthening, and the broad sector strengthening since June/July, the stage is set for Ramelius to gain on the chart.
