It's been an awful start to the trading week for the S&P/ASX 200 Index (ASX: XJO) and most ASX 200 shares so far this Monday. At the time of writing, the ASX 200 has tanked by a painful 0.60%, leaving the Index at just over 7,923 points. But the same cannot be said for ASX gold shares today.
Unlike the rest of the market, ASX gold shares are comfortably pushing higher this session. Take the share price of the ASX's largest gold stock, Newmont Corporation (ASX: NEM). Newmont shares are presently enjoying a 0.40% lift up to $70.50 each.
Evolution Mining Ltd (ASX: EVN) is another gold share that is managing to shine. Evolution stock has enjoyed a 0.37% bounce so far this Monday and is up to $4.02 a share.
Perhaps the biggest gold stock gainer has been Ramelius Resources Ltd (ASX: RMS). Ramelius shares are currently up a strong 0.88% at $1.96 each.
However, not all gold stocks are enjoying such a defiant day this Monday. Northern Star Resources Ltd (ASX: NST), Gold Road Resources Ltd (ASX: GOR) and Perseus Mining Ltd (ASX: PRU) shares are all currently in the red. Saying that, none of these gold stocks have fallen by as much as the broader market.
So what's going on with the gold sector today? Why are we seeing these market-bucking moves in this space?
Why are ASX gold shares shining today?
Well, it probably starts with the gold price itself. The precious metal has strengthened over today's trading. According to Bloomberg, spot gold prices are up 0.18% since last week to US$2,405.20 an ounce. Gold futures have risen even further, with options with a December 2024 delivery up 0.34% to US$2,455.10 an ounce.
It can be difficult to ascertain why a certain commodity moves up or down on any particular day. But there's little doubt that the current political landscape over in the United States is playing at least some kind of role here.
As most of us would know right now, the US Presidential elections that are scheduled for November this year have just been upended by the overnight (our time) decision of current President Joe Biden not to stand for reelection against the Republican nominee and former president, Donald Trump.
Markets had been betting on a Trump-Biden rematch for more than a year now. So, this decision to throw the race wide open represents a whole lot of political uncertainty for the world's largest economy. And if there's one thing investors hate more than anything, it's uncertainty.
That's where gold comes in. Gold is often regarded as a safe haven asset, a physical store of value worth holding during uncertain economic or geopolitical times. As such, we often see investors sell out of 'riskier' assets like stocks and buy into gold whenever these tensions rise.
With the unprecedented developments in the American political arena overnight, it's no surprise that some investors are responding by buying up safe-haven assets like gold.
And that has evidently spilled into the share prices of some of the ASX's gold miners this Monday. Let's see what the rest of the week brings.
