The gold price ticked higher again overnight, offering further tailwinds to S&P/ASX 200 Index (ASX: XJO) gold shares.
Gold is currently trading for US$1,984.00 (AU$3,067.41) per troy ounce.
That's up 0.2% overnight and up 3.3% since this time last month, helping support most gold producers.
Here's how these three leading ASX 200 gold shares are performing today, and over the past month:
- Northern Star Resources Ltd (ASX: NST) shares are up 3.5% today and 3.9% in a month
- Regis Resources Ltd (ASX: RRL) shares are up 2.6% today and 11.% in a month
- Evolution Mining Ltd (ASX: EVN) shares are up 5.1% today and 9.4% in a month
For some context, the ASX 200 is down 0.2% in a month.
What's boosting the gold price?
The yellow metal has been getting support on several fronts lately.
First, is the ongoing conflict in the Middle East.
Gold's classic haven status was in clear display following the Hamas terror attack on Israel on 7 October. The day prior to the attack the gold price stood at US$1,833.01. Bullion has soared 8.2% since then.
On a much more benign front, investors have been increasingly supportive of gold as the world's top central banks look to be near, or at, the end of the rapid cycle of interest rate increases as inflation comes off the boil.
Gold, which pays no yield, tends to struggle amid high and rising rates.
David Meger, director of metals trading at High Ridge Futures, pointed to October's stable consumer price index (CPI) and falling producer price index (PPI) figures posted in the United States as supportive of bullion.
According to Meger (quoted by Reuters):
The results from CPI and PPI are positive and it continues to support gold prices with the expectation that inflation will continue to pull back adding to the expectations that the Fed is done raising interest rates.
The gold price – and ASX 200 gold shares – also are enjoying tailwinds amid "robust" central bank buying.
The World Gold Council's Q3 Gold Demand Trends report noted that "central bank buying maintains a historic pace". This helped drive quarterly demand to 1,147 tonnes (excluding OTC). That's 8% higher than the five-year average.
As to what's ahead for the gold price, Louise Street, senior markets analyst at the World Gold Council, said, "Looking forward, with geopolitical tensions on the rise and an expectation for continued robust central bank buying, gold demand may surprise to the upside."
