ASX gold stocks rise on US interest rates optimism
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The news: Shares in gold miners climbed on the ASX, tracking a steady advance in spot bullion ahead of the US Federal Reserve's final meeting of the year next week.
The numbers: Genesis Minerals (1.8%), Westgold Resources (1.7%), West African Resources (1.5%), Ramelius Resources (1.5%) were the best performing gold stocks by 2:40pm AEDT.
Materials was the second best performing sector, trimming 0.14% as the wider ASX 200 fell 0.45%.
Spot bullion, which last traded up 0.19% at USD2,699.36 ($4,226.67) per ounce, briefly rose above USD2,700 after rising by more than 2% in the previous three sessions, according to Bloomberg data.
The context: As traders look to next week's meeting of the Federal Reserve, markets are pricing in a more than 70% chance of a quarter-point interest rate cut, with lower borrowing costs typically bolstering bullion prices.
The latest gold rally has also been boosted by the resumption of purchases by China's central bank, after a six-month hiatus.
The source: Bloomberg
