After delivering standout returns through much of 2025 and into 2026, ASX gold shares have finally lost some of their shine.
Supported by a surging gold price, persistent geopolitical uncertainty, and strong investor demand for safe-haven assets, many of the sector's biggest names climbed to record or multi-year highs.
More recently, however, a pullback in the gold price and a wave of profit-taking have seen many ASX-listed gold miners retreat from their peaks, prompting investors to weigh up whether this is simply a healthy correction or the start of a more prolonged downturn.
A new report from VanEck suggests the long-term outlook remains positive despite the recent pullback.
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Sentiment switches
Imaru Casanova, Portfolio Manager, Gold and Precious Metals, VanEck said gold has pulled back roughly 25% from January highs.
At the end of June, the apparent end of the conflict in the Middle East further eroded gold's safe-haven appeal, as markets shifted toward a risk-on environment and equity markets traded near recent highs.
Gold is now trading around US$4,000 per ounce, representing an approximately 25% pullback from its January highs. However, gold stocks remain the best-performing asset class over the past year, and gold continues to outperform most other major asset classes.
There's still gold in these hills
However, the long-term case remains supported by inflation, central bank buying and lower real rates.
Gold stocks have historically outperformed the metal itself in rising gold price environments.
However, investors may not need to wait for the next leg higher in gold to begin increasing exposure.
At current prices, these companies are already generating record cash flow, as Q1 2026 earnings made abundantly clear. Gold has traded at an average price of approximately US$4,700 per ounce so far in 2026. With all-in sustaining costs for the sector estimated to average below US$2,000 per ounce in 2026, margins remain very strong even at US$4,000 gold.
According to the report, this gives companies the ability to finance growth, pay dividends and repurchase shares.
Gold stocks continue to trade at valuations that remain low relative to historical levels, while the sector appears to be in strong financial and operational health by historical standards.
Current equity prices appear to reflect more conservative assumptions than those implied by prevailing gold prices.
If investors rotate capital away from sectors with much richer valuations, particularly against a backdrop of rising risk of a pullback, gold stocks could be beneficiaries.
How to gain exposure to gold shares
There are many individual ASX gold shares for investors to consider.
Some of the most popular include:
- Newmont Corporation (ASX: NEM) – One of the largest gold mining companies in the world
- Northern Star Resources Ltd (ASX: NST) – Large mining company with projects in Australia and the United States
Another option is to target gold shares using an ASX ETF.
For example, VanEck Gold Miners ETF (ASX: GDX) includes over 105 companies involved in the gold mining industry.
Or, the VanEck Gold Bullion ETF (ASX: NUGG) provides exposure to the price of physical Australian gold bullion rather than to gold mining companies.
