S&P/ASX 200 Index (ASX: XJO) gold stocks, including Evolution Mining Ltd (ASX: EVN), Newmont Corp (ASX: NEM), and Northern Star Resources Ltd (ASX: NST) shares are charging higher today.
In late morning trade on Thursday, Evolution Mining shares are up 3.8% at $12.79; Newmont shares are up 2.5% at $159.67, and Northern Star shares are up 2.2% at $21.25 apiece.
For some context, the ASX 200 is up 0.7%.
And, as witnessed by the 3.5% intraday gains posted by the S&P/ASX All Ordinaries Gold Index (ASX: XGD), it's not just Evolution, Newmont, and Northern Star shares that have their shine back today.
Here's how these other top ASX 200 gold stocks are tracking at this same time:
- Ramelius Resources Ltd (ASX: RMS) shares are up 5.0% at $3.59
- Bellevue Gold Ltd (ASX: BGL) shares are up 2.7% at $1.60
- Genesis Minerals Ltd (ASX: GMD) shares are up 4.2% at $6.15
- Perseus Mining Ltd (ASX: PRU) shares are up 2.4% at $5.56
- Vault Minerals Ltd (ASX: VAU) shares are up 5.1% at $4.68
- Westgold Resources Ltd (ASX: WGX) shares are up 5.0% at $5.72
- Ora Banda Mining Ltd (ASX: OBM) shares are up 4.1% at $1.33
So, why are the big Aussie gold miners back to outperforming today?
Image source: Getty Images
ASX 200 gold stocks jump on Iran peace talk hopes
While each company has its own unique strengths and challenges, the common thread lifting all the above ASX 200 gold stocks looks to be renewed hopes of a peace deal between the United States and Iran.
Overnight news reports indicate that Iran is currently reviewing the latest proposal from the US in an effort to end the conflict.
The gold price jumped more than 3.5% on that news to top US$4,700 per ounce. The yellow metal has retraced a touch since then, trading for US$4,694 per ounce at the time of writing, according to data from Bloomberg.
Despite its haven appeal, gold – and by connection ASX 200 gold stocks – came under heavy selling pressure following the outbreak of the Middle East conflict. Indeed, on 27 February, bullion was fetching US$5,279 per ounce.
One of the biggest headwinds facing gold following the outbreak of the war has been the global surge in energy prices.
Why is that of particular importance to the gold price?
Well, as the RBA reminded investors this week, rocketing energy costs are in turn stoking inflation and leading to rising interest rates. And gold, which pays no yield itself, tends to perform better in a low or falling rate environment.
