The S&P/ASX 200 Index (ASX: XJO) is tumbling today, but most S&P/ASX All Ordinaries Index (ASX: XAO) gold shares are defying the sell-off to leap higher.
Gold shares shining brightly today include:
- Newcrest Mining Ltd (ASX: NCM), rising 1.14%
- Evolution Mining Ltd (ASX: EVN), lifting 2.57%
- St Barbara Ltd (ASX: SBM), jumping 3.91%
- Emerald Resources NL (ASX: EMR), leaping 2.38%
- Regis Resources Ltd (ASX: RRL), up 1.97%
- AngloGold Ashanti Ltd (ASX: AGG), 3.33% higher
- SSR Mining Inc (ASX: SSR), 1.43% in the green
- Resolute Mining Ltd (ASX: RSG), elevating 3.17%
- Capricorn Metals Ltd (ASX: CMM), up 2.11%
- Westgold Resources Ltd (ASX: WGX), picking up 1.87%
- Genesis Minerals Ltd (ASX: GMD), leaping 2.53%
- Gold Road Resources Ltd (ASX: GOR), rising 1.32%
In contrast, the benchmark ASX 200 Index is 1.51% in the red today.
So why are ASX investors buying up All Ords gold shares today?
What's going on?
ASX All Ords gold shares appear to be rising today amid a lift in the gold price overnight.
Amid market turmoil, investors appear to be turning to gold as a safe haven asset.
The gold price rose by more than 1% to its highest level since early February during Wednesday's trade in the USA, Reuters reported. Spot gold hit US$1,924.63 per ounce.
Commenting on this pivot to gold, Blue Line Futures chief market strategist in Chicago, Phillip Streible said:
It's a total safe-haven trade. There's a lot of concern about Credit Suisse and now European banks are really coming under quite a bit of pressure. So it's a complete flight to safety.
The ASX 200 is struggling today after the S&P 500 Index (SP: .INX) slid 0.7% and Dow Jones Industrial Average Index (DJX: .DJI) fell 0.87% in the USA overnight. News that Swiss bank Credit Suisse's largest investor would not raise its stake beyond 10% (as reported by Reuters) sent the market into turmoil.
However, gold is bucking this trend. We saw a similar pattern on Tuesday, with ASX investors turning to gold despite the ASX 200 sliding.
In a research note this morning, ANZ economist John Bromhead commented on today's gold rally in the midst of the banking crisis. He said.
After a shaky start, gold rallied sharply as investors rushed to have assets amid the widening banking crisis.
Investors struggled to form a unified view on the Federal Reserve's next move. Producer prices in the US unexpectedly fell in February. This comes following strong consumer prices earlier in the week. However, fresh woes at Credit Suisse saw safe haven buying continue to pick up. This was aided by the sharp drop in yields on US Treasuries.
Despite the rise overnight, the gold price is now pulling back and is down 0.89% to US$1,914.20 an ounce, CNBC data shows.
