The Silver Lake Resources (ASX: SLR) share price is the best-performing ASX 200 share of the day so far, climbing 7.3% in late afternoon trading to $1.35.
With no news from the ASX gold miner today, we can put this down to rising commodity prices.
The gold price is ascending on the market today and is now close to its all-time record of US$2,069.40 set in 2020. The gold price is currently trading up 0.24% to US$2,044.52 per ounce.
The yellow metal is up 2.77% for the week and 6.6% over the month, according to Trading Economics.
This is the highest level the gold price has traded at in more than a year.
What's going on with the Silver Lake share price?
Like all ASX shares tied to commodity values, the Silver Lake share price will rise and fall in line with the commodity.
Silver Lake happens to be the top benefactor among ASX 200 gold shares today, but it's in good company.
The second best-performing ASX 200 share today is fellow gold miner West African Resources Ltd (ASX: WAF), up 5.4% to $1.11 per share.
Not far behind is Regis Resources Ltd (ASX: RRL), up 5% to $2.43 per share.
Why is the gold price going up?
According to Trading Economics analysis, a softer United States dollar is boosting the gold price today.
This follows news that US inflation is falling and the labour market is cooling, raising expectations that the Federal Reserve may cease its interest rate hikes, or even cut rates, soon.
According to Trading Economics:
Both headline producer and consumer inflation slowed more than expected while weekly claims surprised on the upside.
Also, FOMC minutes showed the Fed sees more policy firming as appropriate, but some officials considered a pause in the tightening cycle in March due to the banking turmoil.
What's next for this ASX 200 gold share?
Silver Lake Resources owns the Deflector and Mount Monger gold mines in Western Australia.
It also operates the Sugar Zone Mine in Canada, which it acquired 14 months ago.
Back in February, the company reported substantially reduced earnings before interest, taxes, depreciation, and amortisation (EBITDA) at $73.1 million in the 1H FY23.
That's less than half its 1H FY22 EBITDA of $157.6 million.
Over the period, the Silver Lake share price dropped 1.65%.
However, the company says this reflects "a period of investment".
Silver Lake spent $13.3 million over 1H FY23 to improve infrastructure at its Western Australian mines and integrate the Sugar Zone mine into its operations.
In a statement, the company said:
Capital expenditure for the period reflects investment across the portfolio, with the period-on-period increase comprised of the inclusion of infrastructure projects and underground development at the Sugar Zone operation, the establishment of the Tank South underground at Mount Monger and elevated underground development levels at Deflector to access higher grade production fronts.
The Silver Lake share price is up 12.7% in the year to date and down 39% over the past 12 months.
