Why ASX 200 gold stocks dazzled shareholders in March

March proved a profitable month for investors in ASX 200 gold stocks.

An older female ASX investor holds a gangster-style fist pump pose showing off gold rings with dollar signs on them.

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S&P/ASX 200 Index (ASX: XJO) gold stocks dazzled their shareholders in March.

As we head into the final hours of trading for the month, the ASX 200 is up 2.5% since the closing bell sounded on 29 February.

As for ASX gold shares, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller gold stocks outside of the ASX 200 – leapt a whopping 15.9%.

Here's how these top ASX 200 gold stocks performed in March (through to early afternoon today):

  • Northern Star Resources Ltd (ASX: NST) shares gained 12.3%
  • Newmont Corp (ASX: NEM) shares gained 14.0%%
  • De Grey Mining Ltd (ASX: DEG) shares gained 0.8%
  • Ramelius Resources Ltd(ASX: RMS) shares gained 30.0%
  • Gold Road Resources Ltd (ASX: GOR) shares gained 6.9%
  • Evolution Mining Ltd (ASX: EVN) shares gained 22.2%
  • Bellevue Gold Ltd (ASX: BGL) shares gained 25.7%

That's quite a month!

Here's what sent the gold miners soaring.

ASX 200 gold stocks shining bright in March

A lot of stars aligned in March to help ASX 200 gold stocks deliver this outstanding result.

First, as you'd expect, we have a rising gold price.

Bullion ended February already trading near historic highs of US$2,044 per ounce, according to data from Bloomberg.

Today that same ounce is trading near record highs at US$2,190 per ounce, up 7.1% over the month.

Commenting on the strong performance of the yellow metal, Australia and New Zealand Banking Group Ltd (ASX: ANZ) analysts said, "A rising gold price suggests the market expects further falls in inflation should support the central banks move to cut rates later this year. Safe haven demand also remains strong."

Declining inflation and the prospect of falling interest rates have offered tailwinds to the gold price as gold, which pays no yield itself, generally performs better in low or falling rate scenarios.

Central banks are also helping support the yellow metal in another key way. Namely, by continuing to buy near-record amounts of bullion themselves.

And, as ANZ's analysts pointed out, ASX 200 gold stocks are benefiting from gold's haven status as geopolitical turmoil continues to brew in hotspots around the world.

As always, whether you're looking to buy gold shares or any other ASX stocks, be sure to do your own research first. If you're not comfortable with that, or are simply time-poor, reach out for some expert advice.

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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