These ASX 200 gold shares are making hay amid the rising gold price

While the ASX 200 is down over the past month, leading ASX gold producers are charging higher.

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

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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."

Motley Fool contributor Bernd Struben 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.

More on Gold

A woman holds a gold bar in one hand and puts her other hand to her forehead with an apprehensive and concerned expression on her face after watching the Ramelius share price fall today

Up 29% since February, why is this ASX 200 gold stock tumbling today?

The ASX 200 gold stock is under selling pressure on Wednesday. But why?

Read more »

Two ASX shares investors fighting each other to grab gold treasure.

As ASX gold stocks cool off, here are 2 to buy when the price is right

Shaw and Partners portfolio manager James Gerrish reveals 2 gold shares to watch amid the sell-off.

Read more »

A woman wearing a gold top and carrying a gold bar gives the thumbs down signal as she leans against a wall with a sombre look on her face as the Kingsgate share price goes lower

Why are ASX gold shares being trashed on Tuesday?

The sector isn't shining today.

Read more »

A woman in a business suit sits at her desk with gold bars in each hand while she kisses one bar with her eyes closed. Her desk has another three gold bars stacked in front of her. symbolising the rising Northern Star share price

Is this the very best ASX 200 gold stock to buy now?

Is the best gold miner money can buy right now? Bell Potter appears to believe it could be.

Read more »

Open copper pipes

Why this jumbo ASX gold stock is targeting a copper pipeline

This massive gold miner seems to be seeing a better future in copper.

Read more »

A woman wearing a top of gold coins and large gold hoop earrings and a heavy gold bracelet stands amid a shower of gold coins with her mouth open wide and an excited look on her face.

Guess what new trend is taking off amid the soaring gold price

With the gold price soaring to new record highs, an innovative trend is taking off.

Read more »

gold, gold miner, gold discovery, gold nugget, gold price,

Is buying ASX gold shares right now a good idea?

The ASX All Ords Gold Index is up 23% since February. Is it too late to buy gold stocks now?

Read more »

Man holding out Australian dollar notes, symbolising dividends.

Here's why the Newmont share price is making big ASX news today

Newmont shares just passed a big milestone...

Read more »