Why did ASX 200 gold shares have a meltdown today?

Gold shares had a tough run today.

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Key points
  • ASX 200 gold shares fell today 
  • The gold price dropped overnight
  • Evolution Mining reported lower gold production in the first quarter of FY23

ASX 200 gold shares struggled today amid the falling gold price.

Gold explorers on the ASX 200 include Evolution Mining Ltd (ASX: EVN), Newcrest Mining Ltd (ASX: NCM) and Northern Star Resources Ltd (ASX: NST).

Let's take a look at why these ASX 200 gold shares are struggling.

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Gold price falls

Evolution shares dropped 6.97% on Thursday, Newcrest shares finished down 3.39%, and the Northern Star share price fell 1.37%.

The gold price fell 1.3% to US$1,633.80 an ounce overnight, my Foolish colleague James reported this morning. The gold price fell amid rising US treasury yields and a jump in the US dollar.

Also today, Evolution Mining updated the market on its September quarterly results today.

Gold production fell in the September quarter to 161,098 ounces. This is 6.7% less than the June quarter when Evolution produced 172,722 ounces of gold. Evolution achieved an all-in sustaining cost (AISC) of $1,513 an ounce. The realised gold price dropped 3% to $2,414 an ounce.

Heavy rain at the company's Mt Rawdon operation impacted production by 6,500 ounces.

Evolution said its FY23 production and AISC guidance remains the same at 720,000 ounces with an AISC of $1,240 per ounce, plus or minus 5%.

Northern Star reported yesterday its September quarter performance was "slightly below plan". However, the company has also retained its FY23 production and cost guidance.

Share price snapshot

The Evolution share price has fallen 50% in a year, while Northern Star shares have descended 16%. Newcrest shares have also lost 32% in a year.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has fallen 9.2% in a year.

Motley Fool contributor Monica O'Shea has no position in any of the stocks mentioned. 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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