S&P/ASX 200 Index (ASX: XJO) gold stocks have broadly delivered market-shattering returns over the past year as the gold price continues to hit new record highs.
Overnight, the yellow metal again set a new all-time high of US$2,695.69 per ounce. It's come down a tad since then, currently fetching US$2,693.23 per ounce.
Twelve months ago, that same ounce was worth US$1,923.18. This sees the gold price up a whopping 40% over the past year.
ASX 200 gold stocks are putting in a mixed performance today despite the overnight record-high gold price. However, most are outpacing the 0.7% losses posted by the benchmark index in early afternoon trade.
Taking a step back, here's how some of the top Aussie gold producers have performed over the past 12 months, a period that's seen the ASX 200 gain 17.1%:
- Northern Star Resources Ltd (ASX: NST) shares are up 49.0%
- Newmont Corp (ASX: NEM)* shares are up 39.6%
- Ramelius Resources Ltd(ASX: RMS) shares are up 36.5%
- Gold Road Resources Ltd (ASX: GOR) shares are up 2.0%
- Evolution Mining Ltd (ASX: EVN) shares are up 41.1%
- Perseus Mining Ltd (ASX: PRU) shares are up 69.9%
- Regis Resources Ltd (ASX: RRL) shares are up 61.0%
(*Newmont shares first began trading on the ASX on 27 October 2023 after acquiring Newcrest Mining.)
More broadly the S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller gold miners outside of the ASX 200 – is up 37.8% over the past year.
Boom!
Why are ASX 200 gold stocks enjoying a record-high gold price?
The tailwinds propelling the gold price to a series of new highs over the past year continue to blow briskly.
These include near-record levels of bullion purchases by global central banks, even as many of these central banks, including the US Fed and the ECB, have begun to cut interest rates. Gold, which pays no yield itself, tends to perform better in a falling rate environment.
As for the new record gold price ASX 200 gold stocks are eyeing today? Much of that appears to be driven by the yellow metal's historic haven status.
With the conflict in the Middle East showing little sign of easing and a highly contentious and uncertain US presidential election looming, investors have been seeking a secure place to store some of their wealth.
Commenting on the soaring gold price, Nitesh Shah, commodity strategist at WisdomTree, said (quoted by Reuters):
On top of the concerns in the Middle East, you are also nearing the US election, which is looking like a very closely contested election. And that generates a whole host of uncertainty, and gold often is the place to go in times of uncertainty.
The gold price, and ASX 200 gold stocks, may also be catching some tailwinds from the recent LBMA Annual Precious Metals Forecast Survey.
According to Ole Hansen, head of commodity strategy at Saxo Bank:
The LBMA poll that came out from Miami earlier in the week, where the base look for gold prices was to rally near US$3,000 in the next year and silver doing even better, I think that potential is also just attracting a bit of attention.
