ASX gold shares and ASX gold ETFs are having a strong run on Tuesday after the gold price reached a three-week high.
At the time of writing, the gold price is US$4,148 per ounce, up 0.8% today and up 57% in the year to date.
Trading Economics analysts said the gold price hit a three-week high on expectations of another interest rate cut in the US.
The analysts said growing economic uncertainty in the US had increased the likelihood of a rate cut.
The US Government has been shut down for 40 days now.
Meantime, new data shows job losses in the US economy last month, particularly in government and retail sectors.
On top of that, US consumer sentiment has fallen to a three-and-a-half-year low.
The analysts commented:
Traders are pricing in about a 64% chance of a 25-basis-point Fed cut in December, with Fed Governor Stephen Miran advocating a larger half-point reduction amid falling inflation and rising unemployment.
Meantime, America's biggest bank, JPMorgan, now projects the gold price could surpass US$5,000 per ounce next year.
JPMorgan isn't alone in its optimistic predictions.
French bank Societe Generale SA also says the gold price will reach US$5,000 per ounce by the end of next year.
Goldman Sachs is tipping US$4,900 per ounce by the end of 2026.
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ASX gold shares surge on Tuesday
The S&P/ASX All Ordinaries Gold Index (ASX: XGD) is up 2.63% today, while the S&P/ASX All Ords Index (ASX: XAO) is down 0.09%.
The market's biggest ASX gold share, Northern Star Resources Ltd (ASX: NST), is trading 3.45% higher at $26.06.
The Evolution Mining Ltd (ASX: EVN) share price is up 1.9% to $11.29.
Newmont Corporation CDI (ASX: NEM) shares are 4.29% higher at $136.47.
The Genesis Minerals Ltd (ASX: GMD) share price is $6.24, up 3.48% today.
Perseus Mining Ltd (ASX: PRU) shares are $5.18, rising 3.1%.
Westgold Resources Ltd (ASX: WGX) shares are up 0.87% to $5.77.
Perth Mint Gold (ASX: PMGOLD) shares are up 2.27% to $63.15.
Among the ASX small-cap gold shares, Barton Gold Holdings Ltd (ASX: BGD) shares are up 7.14% to $1.20.
New Murchison Gold Ltd (ASX: NMG) shares are 6.1% higher at 3.5 cents apiece.
The Kingsgate Consolidated Ltd (ASX: KCN) share price is up 3.1% to $4.65.
The Golden Horse Minerals Ltd CDI (ASX: GHM) share price is up 4.9% to 75 cents.
Black Cat Syndicate Ltd (ASX: BC8) shares are up 5.39% to $1.08.
The Dateline Resources Ltd (ASX: DTR) share price is up 0.69% to 29 cents.
What about ASX gold ETFs?
Among the gold exchange-traded funds (ETFs), Betashares Global Gold Miners Currency Hedged ETF (ASX: MNRS) is up 4.1% to $13.59 per unit.
MNRS seeks to mirror the performance of the Nasdaq Global ex-Australia Gold Miners Hedged AUD Index and invests in 56 stocks.
The VanEck Gold Miners AUD ETF (ASX: GDX) is up 3.7% to $117.85 per unit.
The GDX ETF tracks the NYSE Arca Gold Miners Index (AUD) and invests in 63 stocks.
Global X Physical Gold ETF (ASX: GOLD) is up 2.35% to $58.26 per unit.
The GOLD ETF seeks to mirror the growth in the Australian dollar gold price.
