Gold miners gain as US rates cut bolsters bullion spot price
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The news: Gold stocks gained on the ASX as the spot price for the precious metal rose to near its record high.
The numbers: Spot gold prices lifted 0.22% to USD2,592 ($3,797.7) an ounce by 1:25pm AEST.
Gold miners De Grey Mining (4.2%), Bellevue Gold (3.4%), West African Resources (2.7%), Genesis Minerals (2.6%) and Regis Resources (2.6%) made up five of the top 20 performing stocks across the ASX 200.
The materials sector added 0.6% as the wider sharemarket grew 0.23%.
The context: Gold steadied to near its record high of USD2,600, as global stocks extended their rally following the US Federal Reserve's interest rate cut this week.
Lower rates typically supporting higher gold prices, leading many investors to maintain a bullish outlook on gold. However, Treasury yields were little changed on Friday while an index of dollar strength was locked in a narrow range, Bloomberg reported.
The source: Bloomberg
