It's no secret that most ASX gold shares have had a heck of a run this year. Name a gold stock that comes to mind, and chances are that it has seen some impressive gains in 2024.
The ASX's largest gold miner, Newmont Corporation (ASX: NEM), has gained 11.2% this year.
De Grey Mining Ltd (ASX: DEG) has enjoyed a 13.6% appreciation, while Regis Resources Ltd (ASX: RRL) is up 15.6%.
Northern Star Resources Ltd (ASX: NST) stock has risen by 23.5%, just losing out to Evolution Mining Ltd (ASX: EVN)'s 24.2% return.
St Barbara Ltd (ASX: SBM) is one of the better performers, soaring more than 60%.
You get the picture.
These impressive gains from ASX gold shares have, of course, been spurred by a dramatic reevaluation of the price of gold itself.
Over 2024, the yellow metal has risen from just over US$2,077 an ounce to the US$2,705 per ounce price it is currently commanding.
Gold had a bit of a runup as this week's American presidential election approached. However, since the results became known, the precious metal has notably dropped in value. It was only at the end of October that gold was asking US$2,792 an ounce.
So this begs the question: Is now a good time to invest in ASX gold shares?
Is it time to buy ASX gold shares?
Well, experts seem united in their view that the current pullback in gold is a good time to invest.
According to reporting from mining.com, Matthew Jones, precious metals analyst at London-based metals broker Solomon Global, is arguing that gold may see some short-term fluctuations, thanks to a higher US dollar, but that its long-term future as an asset looks bright:
This rally in the dollar and yields has put pressure on gold, which traditionally falls as real interest rates rise, reflecting reduced demand for safe-haven assets in the short term… However, from a longer-term, macro perspective, the future is 'as good as gold'.
Jones points out that Trump's election promise to implement sweeping tariffs on the American economy could "disrupt global trade and could promote gold as a haven investment if financial markets encounter turmoil".
Tariffs are taxes on imports into a country's economy. They have fallen out of favour over the past few decades, but Trump is promising to restore them to a central role in American economic policy.
In the past, tariffs enacted on other countries have resulted in retaliatory actions, which could indeed disrupt global trading.
Akhtar Faruqui of FXStreet.com agrees. Here's some of what he had to say on gold's outlook:
[The] gold price may receive support as Republican Donald Trump could lead to higher inflation, given his pledge to significantly raise trade tariffs. This may prompt investors to seek safe-haven assets as a hedge against long-term inflation risks.
Trump's economic policy includes imposing tariffs, increasing the fiscal deficit, and reducing taxes. These proposals conflict with the Federal Reserve's efforts to control inflation, likely prompting the US central bank to take a more gradual approach to easing monetary policy
So it seems that at least these two experts reckon gold could well push even higher from its most recent records. No doubt the ASX's gold bugs will find these sentiments exciting. But let's wait and see what happens with gold and ASX gold shares going forward.
