ASX 200 gold shares are in the red today amid a lower gold price and a stronger US dollar.
Gold shares that are sliding include Northern Star Resources Ltd (ASX: NST), Newcrest Mining Ltd (ASX: NCM) and Evolution Mining Ltd (ASX: EVN).
Let's take a look at what is impacting ASX 200 gold shares today.
Gold price falls
Northern Star shares are tumbling 3%, while Evolution shares are sliding nearly 4%. Meanwhile, Newcrest shares are down more than 1% at the time of writing.
The gold price is down 0.38% and is currently fetching US$1,956.90 an ounce, according to CNBC.
Gold prices tend to fall if the US dollar increases, as it is more expensive to buy for those purchasing with a foreign currency.
While the gold price lifted in early trade amid ongoing uncertainty about US debt ceiling negotiations, the gold price fell in later trade as the US dollar lifted.
Commenting on the gold price in a research note today, ANZ economist John Bromhead said:
Gold was higher in early trading as the ongoing US debt ceiling negotiations triggered safe haven buying. However, it gave up all those gains as a stronger USD sapped investor demand.
Investors are more likely to turn to gold as a safe haven when the US dollar is weaker.
Looking at the outlook for these ASX 200 gold shares, Macquarie has recently expressed optimism for the gold price. Analysts said in May:
We still expect [gold] to test the 2020 nominal high of US$2,075 and likely break above it, entering uncharted territory.
The last time this occurred was in 2020, when the 2011 high of US$1,921 was taken out, with prices rallying a further US$154.
The Australian dollar is at its lowest level against the US dollar year to date at US65.4 cents.
Share price snapshot
ASX 200 gold share Northern Star Resources has soared nearly 40% in the last year.
Newcrest shares have risen 4% in the past year.
Evolution Mining shares have fallen 7% in the past 52 weeks.
