ASX gold miners sink on lower gold prices
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The news: Gold miners saw some of the biggest declines on the ASX as global gold prices lowered ahead of a US Federal Reserve meeting later this week, where policymakers are expected to reaffirm delays to interest rate cuts.
The numbers: ASX gold miners Newmont (-2.3%), Gold Road Resources (-2.1%) and Northern Star (-0.3%) all lost ground by 1:30pm AEST.
This followed a gold bullion price drop of 0.8% after falling more than 2% last week, according to Bloomberg.
The context: Fresh data released on Friday showed that US inflation in March climbed year on year. Traders are now expecting only one interest rate cut this year in the US, compared to around six quarter-point cuts expected at the start of the year.
The global price of gold, which typically lowers amid higher interest rates, has also been impacted by increased efforts by the US to secure a truce in Gaza, reducing support for gold as a safe haven commodity.
The source: Bloomberg
