Here's why ASX gold shares are rocketing 5% today

Gold miners are dominating the ASX's best stocks so far today…

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rising gold share price represented by a green arrow on piles of gold block

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It's been a great start to the trading week for the S&P/ASX 200 Index (ASX: XJO) and most ASX 200 shares. At present, the index is trading 0.56% higher and is back over 6,990 points. But let's talk about ASX gold shares.

ASX gold shares are on fire today, with most gold miners banking gains of at least 5%.

Take the largest ASX gold stock on the stock market, Newcrest Mining Ltd (ASX: NCM). At the time of writing, Newcrest shares have soared 5.07% to $25.50 each.

Then there's Northern Star Resources Ltd (ASX: NST). This gold stock has rocketed 5.46% to $11.39 a share.

Gold Road Resources Ltd (ASX: GOR) is lagging a little relative to its peers but is still up 4.3% to $1.75.

But not so with Bellevue Gold Ltd (ASX: BGL). The Bellevue Gold share price has vaulted 6.91% higher to $1.47 a share.

De Grey Mining Limited (ASX: DEG) is leading the pack though. De Grey shares are currently up a whopping 8.97% to $1.21.

So what's going on here with the ASX gold sector that is seeing these gold miners enjoy such conspicuous gains this Monday?

Why are most ASX gold shares surging by 5% or more?

Well, it's probably a couple of factors. The first is the gold price itself. We don't yet have fresh gold pricing for this week out of the US markets. But as it currently stands (according to CNBC), gold futures are already baking in a 0.94% rise to US$1,862.80 per ounce. This is likely to be supporting ASX gold mining shares on the stock market today.

But the other factor we must consider is the dire events that are occurring in the Middle East right now. Israel has declared war against the Gaza-based Hamas group after Hamas fighters attacked Israel in some of the worst violence the region has seen for decades.

Gold is treated by most investors as a safe haven asset, particularly in times of economic or geopolitical turmoil. Well, there is most certainly far more of the latter right now than there was last week. No one knows how long this war is going to last, what its cost will be and how it will affect global markets.

In this climate of fear and uncertainty, it's no surprise to see investors run into assets that they see as providing safe haven protections and a hedge against geopolitical instability. So I wouldn't be surprised to see the gold price continue to rise amid this terrible situation.

Investors might be banking on this today, and thus rushing into gold mining shares as a consequence.

Motley Fool contributor Sebastian Bowen has positions in Newcrest Mining. 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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