ASX 200 gold shares had a tough run on the market today.
Gold shares include Newcrest Mining Ltd (ASX: NCM), Northern Star Resources Ltd (ASX: NST) and Evolution Mining Ltd (ASX: EVN).
Let's take a look at what may have impacted ASX 200 gold shares today.
What happened?
The Newcrest Mining share price fell 0.99% today, while Northern Star Resources shares dropped 0.6%. Meanwhile, the Evolution Mining share price was flat today. In contrast, the S&P/ASX 200 Index (ASX: XJO) climbed 0.23% today.
This follows the gold price falling overnight. Spot gold fell 0.65% to US$1,764 an ounce.
Newcrest, Northern Star and Evolution are all major gold producers.
Gold prices fell amid a stronger US dollar and treasury yields rising. Fear of interest rate rises impacted the US dollar.
Commenting on the gold price in a research note today, ANZ senior economist Adelaide Timbrell said:
Gold edge lower amid further hawkish comments from the Fed. James Bullard called for the Fed to raise rates to at least 5.00–5.25%, calling it a minimum level of 'sufficiently restrictive'.
St Louis Federal Reserve president and CEO James Bullard, speaking at an economic event in Louisville Kentucky, indicated rates could rise by up to 7%.
Commenting further on Bullard's remarks, ANZ's Timbrell added:
The USD climbed following his comments, and bond yields rose. This weighed in investor demand, with spot gold declining nearly 1%.
Meanwhile, Northern Star provided an exploration update to the market this week. The company said it has spent $48 million on FY23 exploration to date. Ongoing exploration has highlighted significant "life of mine" extension potential.
Managing director Stuart Tonkin said:
Our exploration team has made a strong start to FY23, advancing some exciting early-stage prospects across our global tier-1 portfolio as well as expanding beyond known areas of mineralisation.
Newcrest announced this week that the Brucejack mine in Canada has resumed operations. The mine shut in October following a fatality at the mine. The FY23 production guidance for the mine remains unchanged.
Share price snapshot
The Newcrest Mining share price has fallen 24% in the past year, while Northern Star Resources shares have descended nearly 5% in the last 52 weeks.
Evolution Mining shares have descended nearly 42% in the last year.
For perspective, the ASX 200 has fallen 3% in the last year.
