Is it too late to get on board the ASX gold train?

Investors have been piling into ASX gold stocks amid a surging price for the yellow metal.

A man standing in a red rock mine is covered by a sheet of gold blowing in the wind.

Image source: Getty Images

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The ASX gold train has been running full steam ahead for more than a month now.

Investors have been sending ASX gold stocks soaring amid a fast-rising gold price.

It was only back on 3 October that the yellow metal was trading for US$1,823 per ounce.

By 28 February, that same ounce was worth US$2,030.

And over the past five weeks, gold has continued to charge higher, hitting new record highs of more than US$2,355 per ounce earlier today.

As for the performance of the Aussie gold miners?

Since 28 February the S&P/ASX All Ordinaries Gold Index (ASX: XGD) has soared an eye-popping 26%. For some context, that compares to a 3% gain posted by the ASX 200 over this same time.

The Northern Star Resources Ltd (ASX: NST) share price has underperformed the gold index, though it's still up a very healthy 19% since 28 February.

The Newmont Corp (ASX: NEM) share price, on the other hand, has outperformed, up 33% over this time. Evolution Mining Ltd (ASX: EVN) shares have also outpaced the gold benchmark, gaining 36% since 28 February.

With these fat gains already in the bag, is the ASX gold train ready to run out of puff?

Or can it keep charging ahead?

What now for the speeding ASX gold train?

While the future is inherently uncertain, I believe that the gold price and most ASX gold stocks could still offer some sizeable gains in 2024.

That's because the demand outlook for gold continues to look very strong.

The yellow metal, which pays no yield itself, tends to perform better in low or falling interest rate environments. While we're not sure when the US Federal Reserve, the RBA and other central banks will begin cutting rates, some easing certainly looks to be on the cards for 2024.

Gold also has been benefiting from its safe-haven status, both in terms of an uncertain global economic outlook and amid rising geopolitical tensions from the Middle East to Eastern Europe.

The gold price should also find support with both consumer demand (particularly in China) and central bank demand at near-record levels and forecast to remain strong.

So, I think the gold train certainly has some steam left in it.

Investors looking to get exposure to further potential rises in the gold price without buying and storing physical bullion themselves could consider buying an exchange-traded fund (ETF) like Perth Mint Gold (ASX: PMGOLD) or Betashares Gold Bullion ETF (ASX: QAU).

Or, for potentially leveraged returns, investors can consider buying shares in the big ASX gold producers like Newmont, Northern Star and Evolution Mining. These stocks will often rise (or fall) significantly more than any underlying moves in the gold price.

If you're not sure how or where to invest your hard-earned money, please 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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