ASX gold stocks surge amid global market uncertainty
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The news: Gold companies advanced in morning trade on the ASX, boosted by volatility in global equities, leading investors turning to the safe-haven commodity.
The numbers: Gold miners made up eight of the top 10 performing ASX 200 stocks by 11:30am AEDT. Bellevue Gold (3.3%), Northern Star Resources (3.14%), and Regis Resources (2.93%) led the rally.
The materials sector lowered 0.66% as the ASX 200 index fell 0.49%.
Spot gold was roughly flat at USD2,660.79 ($4,285.34).
The context: A sell-off in global bonds continued on Wednesday, weighing on Wall Street indices and boosting the US dollar. The benchmark 10-year US Treasury yield reached 4.73%, its highest since April 2024, before reducing to around 4.69%.
The sell-off in bonds accelerated after a CNN report said that US president-elect Donald Trump is considering declaring a national economic emergency to provide legal justification for a series of universal tariffs on allies and adversaries, Reuters reported.
US Federal Reserve officials also raised new inflation concerns and suggested the incoming Trump administration's plans may slow economic growth and raise unemployment, according to minutes of its December policy meeting.
Government bond yields also surged around the world, with the 10-year rates in the UK and Japan rising to their highest levels for more than a decade. The Australian 10-year government bond yield edged higher to 4.52%.
