Gold stocks lead ASX 200 rises as prices near record peak
Make us a preferred source
Make us a preferred source on Google
More news: Gold stocks Newmont, Genesis Minerals, and Emerald Resources have led rises on the ASX 200 as gold prices near its record peak.
At 2:10pm AEDT, Newmont shares were trading 4.9% higher at $51.09, Genesis was 6.2% higher at $1.81 and Emerald lifted 3.5% to $3.10.
Gold nears record high as US interest rate cuts loom
The news: Gold prices approached record highs overnight as investors' expectations of a US interest rate cut rise.
The numbers: Gold rose above USD2,100 ($3,226) an ounce on Monday, nearing the metal's USD2,135.39 peak in December 2023.
The context: Investors typically buy up gold ahead of rate cuts, as non-yielding assets like gold and silver tend to perform well in lower-rate environments. The precious metal has remained above the benchmark USD2,000-an-ounce level since mid-December, as expectations rise on US interest rate cuts in June this year.
Demand for gold also tends to grow during economic and political uncertainty, with investors expecting the upcoming US presidential election and ongoing wars in Ukraine and Gaza to lift prices.
Meanwhile, buying by investors has been reflected in gold exchange-traded funds (ETFs), with holdings of SPDR Gold Shares seeing their first daily inflow in nine trading sessions on Friday, according to Bloomberg.
Gold ETFs were a key driver in the precious metal’s rally to a record high during the pandemic, but higher rates have largely deterred buyers since 2022.
The source: Bloomberg
