Why are ASX 200 gold stocks surging again on Thursday?

ASX 200 gold stocks are racing ahead of the benchmark today.

a man in a green and gold Australian athletic kit roars ecstatically with a wide open mouth while his hands are clenched and raised as a shower of gold confetti falls in the sky around him.

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S&P/ASX 200 Index (ASX: XJO) gold stocks are shining bright again today.

During the Thursday lunch hour, the ASX 200 is up a healthy 0.5%.

But the S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller gold shares outside of the ASX 200 – is leaving those gains in the dust, surging 3.3% at this same time.

Here's how these leading ASX 200 gold stocks are tracking in intraday trade:

  • Northern Star Resources Ltd (ASX: NST) shares are up 3.1%
  • Newmont Corp (ASX: NEM) shares are up 3.3%
  • De Grey Mining Ltd (ASX: DEG) shares are up 5.0%
  • Ramelius Resources Ltd(ASX: RMS) shares are up 5.6%
  • Gold Road Resources Ltd (ASX: GOR) shares are up 1.1%
  • Evolution Mining Ltd (ASX: EVN) shares are up 5.2%
  • Bellevue Gold Ltd (ASX: BGL) shares are up 5.8%

So, what's driving today's big gains?

ASX 200 gold stocks surge on US Fed meeting

ASX 200 gold stocks, including Northern Star and Newmont, look to have gotten a big boost following yesterday's US Federal Reserve meeting (overnight Aussie time).

This saw Fed chair Jerome Powell indicate the world's top central bank still was waiting for more evidence that inflation is returning to its 2% target range before cutting interest rates.

While the US benchmark rate was left unchanged in the range of 5.25% to 5.50%, Powell spurred investor exuberance by flagging that interest rate reductions were looking likely in 2024.

"It is still likely in most people's view that we will achieve that confidence and there will be rate cuts," he said.

Atop sending the S&P 500 Index (INDEXSP: .INX) up 0.9% to close at another record high, the gold price soared 1.4% to US$2,197.29 per ounce. And earlier today, bullion broke into new record territory of US$2,220.89 per ounce, according to data from Bloomberg.

Gold, which pays no yield itself, tends to perform better in lower or falling rate environments.

With bullion resetting new all-time highs, investors are piling into ASX 200 gold stocks today.

Income investors may be hoping that 2024's 7% increase in the gold price could usher in boosted dividends from the big Aussie gold producers in the second half of the year.

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.

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