ASX gold stocks lower as prices steady
Make us a preferred source
Make us a preferred source on Google
The news: Gold miners lowered in morning trading as gold prices steadied after edging down on Tuesday, while investors brace for monthly US payrolls data that could influence the size of a likely interest rate cut later this month.
The numbers: Bullion lost 0.3% on Tuesday and was steady at just below USD2,500 ($3,729.17) an ounce by 1:10pm AEST, according to Bloomberg figures.
De Grey Mining, down 7.5%, was one of the worst performers across the ASX 200 while Gold Road Resources (-6.3%), Westgold Resources (-5.8%) and Red 5 (-4.9%) were among the hardest hit.
Materials, down 2.59%, saw the second largest sectoral fall as the wider market shed 1.99%.
Three of the four largest gold miners on the ASX by market capitalisation — Northern Star Resources (-2.6%), Evolution Mining (-3.7%) and Perseus Mining (-3.6%) — were also outstripping the sharemarket's declines.
The context: Gold has rallied by more than a fifth this year, supported by rising expectations that the US Federal Reserve will start cutting interest rates this month. Lower borrowing costs typically benefit the metal, which does not pay interest.
Investors are awaiting new US payrolls data on Friday, with any signs of labor-sector weakening likely to support more aggressive rate cuts by the Fed, potentially boosting bullion.
The source: Bloomberg
