Why did ASX 200 gold shares have a meltdown today?

Gold shares had a tough run today.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

A man's eyes pop behind the ice cream melting in his hands, making a mess.

Image source: Getty Images

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.

More on Materials Shares

A group of people gathered around a laptop computer with various expressions of interest, concern and surprise on their faces as they review the payouts from ASX dividend stocks. All are wearing glasses.
Resources Shares

Buy, hold, or sell? South32, Capstone Copper, and BHP shares

Let's see what the experts think.

Read more »

A man wearing a suit holds his arms aloft, attached to a large lithium battery with green charging symbols on it.
Materials Shares

PLS shares jump 320% in 12 months: Buy, sell or hold?

The lithium miner has flown from strength to strength over the past year.

Read more »

Business people standing at a mine site smiling.
Materials Shares

Morgans just placed buy ratings on these ASX materials stocks

These two stocks could be worth adding to your portfolio according to Morgans.

Read more »

Female miner in hard hat and safety vest on laptop with mining drill in background.
Materials Shares

Why Lynas could be one of the ASX's biggest winners again today

Lynas is gaining strategic value as rare earths tensions rise.

Read more »

Two workers on site discuss the next stage of this civil engineering job.
Materials Shares

Is takeover tension sending this ASX steel stock soaring?

Strong fundamentals and takeover speculation have pushed this share up 42%.

Read more »

Smiling worker in metal landfill.
Materials Shares

Another US milestone, another share price drop: What's going on with this ASX stock?

Metallium hits another US milestone, but shares slip again on Tuesday.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face.
Materials Shares

Which ASX mining stock could rise 120% according to a leading broker?

Bell Potter thinks this mining stock could be seriously undervalued.

Read more »

Male building supervisor stands and smiles with his arms crossed at a building site with workers behind him.
Materials Shares

Down 25%! Is this resurgent ASX 200 stock a strong buy?

Analysts at Morgans see more than 60% upside ahead.

Read more »