ASX 200 gold shares are having a stellar end to the week as the gold price recovers from two-year lows earlier in the week.
Among the gold explorers rising are Newcrest Mining Ltd (ASX: NCM), Northern Star Resources Ltd (ASX: NST) and Evolution Mining Ltd (ASX: EVN).
So why are ASX 200 gold shares having such a good day?
Gold prices recover
Newcrest shares are rising nearly 2.97%, Northern Star Resources shares are up 3.41% and Evolution Mining shares are 2.52% in the green. Other gold miners rising include St Barbara Ltd (ASX: SBM), up 5.4%, as well as Silver Lake Resources Limited (ASX: SLR) and Regis Resources Limited (ASX: RRL), both rising 5% and 4.8% respectively.
The spot gold price is up 0.15% to US$1671 an ounce at the time of writing, CNBC data shows. However, the gold price has recovered 2.5% from the more than two-year low of S$1629.50 on Monday afternoon.
The gold price fluctuated overnight as investors weighed up a slight fall in the US dollar and potential US rate hikes. Commenting on the gold price, OANDA senior analyst Edward Moya, quoted by the CNBC said:
A slightly weaker dollar today might give some relief… but the key takeaway should still be what's happening with yields, the short end of the curve is still rising strongly.
You're probably looking at a gold market that's still going to react to everything about the dollar, everything about Fed expectations.
Meanwhile, St Barbara yesterday confirmed it is in discussions with operators in the St Leonora region regarding "a potential business combination or combinations" to unlock "operating and development synergies in the region".
