ASX 200 gold shares had a good year in 2024, much of which was backed by the surging price of the yellow metal itself.
Gold prices lifted from US$2,010 per ounce in mid-January last year. Despite some volatility, they now fetch US$2,673/ounce at the time of writing, after climbing 3% in the past month of trade.
With the snapback rally since December, three gold miners have touched new 52-week highs today: De Grey Mining Ltd (ASX: DEG), Evolution Mining Ltd (ASX: EVN), and Gold Road Resources Ltd (ASX: GOR).
Let's take a closer look at why these ASX 200 gold shares are shining so bright.
What's driving ASX 200 gold shares higher?
Gold prices surged last year to reach all-time highs of US$2,785/ounce in October before retreating to current levels.
According to the experts, several factors are at play. First in foremost is the market's views around inflation and interest rates.
Reuters reported that gold prices continued their recent gains this week thanks to softer-than-expected US inflation data.
Economists predicted a 3.4% rise in manufacturing inflation, measured by the Producer Price Index (PPI), which came in lower at 3.3%.
And according to Goldman Sachs, central banks have been aggressively buying gold to add to their reserves, especially in emerging markets. This has "driven prices since 2022", the broker says, especially via purchases made from the People's Bank of China (PBOC).
As reported by Bloomberg last year, The PBOC resumed purchases again in November after a six-month hiatus.
This looks to have been bullish for the yellow metal. The upward momentum has, in turn, benefitted ASX 200 gold shares.
ASX 200 gold shares hit new highs
With sentiment turning positive in the sector again, these ASX 200 gold shares have caught a strong bid and touched new yearly highs today.
De Grey Mining is fetching $1.99 per share at the time of writing after touching a 52-week high of $2.01 apiece around midday.
Investors have bid up the ASX 200 gold share this week following the company's announcement on drilling results from its Hemi Gold Project.
The latest infill drilling results from the Brolga deposit have "supported" the site's updated mineral resource estimate (MRE), with the maiden MRE now measured at 0.6 million ounces (Moz).
De Grey's stock also caught a bid following the announcement Northern Star Resources Ltd (ASX: NST) is set to acquire the company. As reported by my colleague James, the deal will be worth $5 billion.
Shares are up more than 70% in the past year.
Meanwhile, Evolution Mining shares set a new 52-week high of $5.47 apiece earlier in the session.
In December, Evolution secured regulatory approval to extend operations at its Cowal Gold Mine until 2042.
The company says the extension allows it to continue open-pit mining at the site, with "ore processing at a rate of up to 9.8 Mtpa."
Evolution mining shares are up 43% in the past year, and up 12% this year to date alone following the update.
Finally, Gold Road Resources nudged a new yearly high of $2.33 apiece at the time just after midday, just north of its previous 52-week high of $2.27.
The ASX 200 gold share has had several recent catalysts, including record production at its Gruyere joint venture, which produced more than 91,600 ounces of gold in the December quarter.
Goldman Sachs rates the stock a buy with a $2.65 per share price target.
