Firm bullion price lends support to ASX gold stocks
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The news: Bullion prices have stayed firm near record highs, helping boost sentiment in shares of ASX-listed gold miners.
The numbers: Spot gold prices are slightly higher at USD2,506.27 ($3,766.48) per ounce in Singapore, as traders prepared for the US consumer price index report on Wednesday that is likely to reinforce the case for the US Federal Reserve easing rates.
On the ASX, shares of miners including West African Resources, Emerald Resources, De Grey Mining, Newmont, Evolution Mining, Northern Star and Regis Resources were all up between 0.3% and 2.8% in early trading.
The context: Bullion has continued to trade near USD2,500 an ounce, and lower interest rates are typically positive for the non-interest bearing precious metal.
Gold has surged more than 20% this year, boosted by robust purchasing by central banks as well as expectations of Fed rate cuts. The precious metal has also been supported by safe-haven demand amid ongoing conflicts in the Middle East and Ukraine.
The source: Bloomberg
