S&P/ASX 200 Index (ASX: XJO) gold shares are enjoying a very strong 2023 so far.
And gold stocks appear well positioned for more outperformance in the months ahead.
What's happening with ASX 200 gold shares?
ASX 200 gold shares, including Northern Star Resources Ltd (ASX: NST) and Evolution Mining Ltd (ASX: EVN), have trounced the benchmark returns year to date.
Since the closing bell on 30 December, the ASX 200 has gained a very healthy 5%.
Over that same time, however, the Evolution share price is up 20% and the Northern Star share price is up 28%.
These gains factor in today's losses, with both ASX 200 gold shares down around 2% as we head into the lunch hour.
That retrace is because the yellow metal came under some pressure over the weekend as investors upped the odds of a rate hike from the United States Federal Reserve next month.
Higher US interest rates pressure gold, which pays no yield itself and is priced in US dollars.
Gold is currently trading for US$2,000.51 per troy ounce, down 2% since Friday.
But bullion remains up a solid 8.8% since 3 January. And a leading fund manager expects the sector to continue to reward investors in the year ahead.
What can investors expect next?
Argonaut Resources portfolio manager David Franklyn is among the fund managers with a bullish outlook for gold, and by connection ASX 200 gold shares.
According to Franklyn (quoted by The Australian Financial Review):
We had a big exposure to gold and gold is still looking pretty good. It's been very strong over the last year – and really, with the geopolitical situation, I think it'll continue.
Franklyn cited a number of factors that have been supporting the gold price recently, which he expects are likely to persist.
Those include the banking crises witnessed in the US and Europe, the rapid pace of gold purchases by global central banks, and the increasing demand for jewellery in China and Europe.
Franklyn also noted that the outflows hitting gold exchange-traded funds (ETFs) earlier this year have abruptly reversed.
"They've been in net outflows for most of the last four months. And that's just in March switched around the other way with inflows," he said. "We think there's good dynamics around gold and gold companies. The margins will be improving with costs and gold price going up."
How have these ASX 200 gold shares fared over the past six months?
While the year-to-date returns have been excellent, investors who snapped up shares in either of the above-mentioned ASX 200 gold shares six months ago will really be laughing.
Over the past six months, the Northern Star share price has surged 83%.
The Evolution Mining share price is up a whopping 88% over that same time frame.
