Mining shares are rocking the ASX index today, but why?

The mining sector has been a great place to be on Friday.

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The S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a positive note. At the time of writing the ASX benchmark index is up 0.55% to 7,149.3 points.

A key driver of this has been the mining sector, with both gold and materials shares recording solid gains today and driving the ASX benchmark index higher.

For example, the S&P/ASX All Ords Gold index is currently up 2.75% and the S&P/ASX 200 Materials index is up 1.5%.

On an individual basis, among the highlights are the following ASX mining shares:

  • The BHP Group Ltd (ASX: BHP) share price is up 1.5%
  • The Champion Iron Ltd (ASX: CIA) share price is up 4%
  • The Evolution Mining Ltd (ASX: EVN) share price is up 3%
  • The Newcrest Mining Ltd (ASX: NCM) share price is up 3.5%
a man in a hard hat and overalls raises his arms and holds them out wide as he smiles widely in an optimistic and welcoming gesture.

Image source: Getty Images

What's going on?

Investors have been buying materials and gold shares today following a strong night of trade for commodity prices.

According to the AFR, the iron ore price rose a sizeable 3.9% to US$102.20 a tonne overnight, whereas the gold price was up 0.65% to US$1,995.3 an ounce. It is also worth noting that copper futures rose 2.1% and aluminium futures climbed 1.9%.

All this bodes well for the profitability of the ASX mining shares listed above.

Is it too late to invest?

The good news is that all four of these ASX mining shares are rated as buys by brokers.

Goldman Sachs has a buy rating and $49.00 price target on BHP's shares, as well as a buy rating and $8.20 price target on Champion Iron shares.

Whereas Morgan Stanley has an overweight rating and $3.75 price target on Evolution's shares and Ord Minnett has an accumulate rating and $33.00 price target on Newcrest's shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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