Why are ASX 200 mining shares going gangbusters on Friday?

Gold and uranium stocks are dominating the top 10 risers of the ASX 200 today.

Mining shares are dominating the top 10 risers of the benchmark S&P/ASX 200 Index (ASX: XJO) today.

ASX 200 gold shares and uranium shares feature prominently following lifts in their commodity prices.

The S&P/ASX 200 Materials Index (ASX: XMJ) is up 0.20% amid a strong day for the local share market.

All 11 market sectors are in the green today, and the ASX 200 is 0.59% higher at 8,249.6 points.

The local market has bounced on news that China intends to cut interest rates this year, as reported by The Financial Times.

A smiling miner wearing a high vis vest and yellow hardhat does the thumbs up in front of an open pit copper mine.

Image source: Getty Images

ASX 200 mining shares dominate the top 10

Here are the 10 highest rising shares of the ASX 200 in early afternoon trading.

RankASX 200 share Market sectorShare price gain
1Deep Yellow Limited (ASX: DYL)Energy (Uranium)9.7%
2Paladin Energy Limited (ASX: PDN)Energy (Uranium)8.4%
3Boss Energy Ltd (ASX: BOE)Energy (Uranium)8.1%
4Genesis Minerals Limited (ASX: GMD)Materials (Gold)4%
5Capricorn Metals Ltd (ASX: CMM)Materials (Gold)3.2%
6Vault Minerals Ltd (ASX: VAU)Materials (Gold)3%
7Newmont Corporation (ASX: NEM)Materials (Gold)2.9%
8Gold Road Resources Ltd (ASX: GOR)Materials (Gold)2.7%
9West African Resources Ltd (ASX: WAF)Materials (Gold)2.4%
10PEXA Group Ltd (ASX: PXA) Real Estate 2.3%
Source: asx.com.au

Strong commodity prices lift ASX 200 gold and uranium shares

ASX 200 uranium mining shares are in the green on Friday after a 2.31% lift in the uranium price overnight.

The uranium price closed at US$73 per pound.

The value of uranium decreased by close to 20% in 2024 after a remarkable surge that began in August 2021 and ran through to early 2024 when it reached a cyclical peak of US$106 per tonne.

ASX 200 gold mining shares are also rising today on the back of strength in the commodity price. The gold price is trading at a two-week high of US$2,658.74 per ounce at the time of writing.

This is not far off the all-time record price that the commodity hit last year.

The gold price rose by 27% in 2024, largely due to its safe-haven status amid global economic uncertainty and wars in the Middle East and Ukraine.

According to Trading Economics, that 27% gain represents gold's best annual performance since 2010.

Trading Economics analysts said:

The rally has been fueled by U.S. monetary easing, record central bank purchases, and persistent geopolitical tensions, including Wednesday's Russian drone strikes on Kyiv and Israeli military actions in Gaza.

However, the outlook for gold remains mixed, as Federal Reserve Chair Jerome Powell's caution over further rate cuts, citing renewed inflation risks, has dampened the appeal of the non-yielding asset.

Meanwhile, traders are weighing uncertainties tied to the incoming Trump administration's economic policies and tariffs, as well as China's efforts to bolster growth.

Despite these factors, expectations of continued central bank gold purchases, supported by a World Gold Council survey, could underpin demand and maintain upward pressure on prices.

What about ASX iron ore shares?

Whilst mining shares dominate the 10 best performers of the ASX 200 today, these gains are not across the board. The major ASX iron ore shares are in the red on Friday.

At the time of writing:

  • BHP Group Ltd (ASX: BHP) shares are down 0.28% to $39.85
  • Fortescue Ltd (ASX: FMG) shares are down 1.04% to $18.61
  • Rio Tinto Ltd (ASX: RIO) shares are down 0.31% to $117.84
  • Mineral Resources Ltd (ASX: MIN) are down 0.01% to $34.73

In overnight trading, the 62% iron ore price fell 0.16% to US$103.61 per tonne.

Motley Fool contributor Bronwyn Allen has positions in BHP Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended PEXA Group. The Motley Fool Australia has recommended BHP Group. 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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