Gold stocks rise after bullion price hits record high
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More news: Shares in ASX-listed gold stocks rose after the price of the precious metal crossed US$2,300 ($3,502.17) an ounce for the first time.
Shares in Evolution Mining were up 1.8% to $3.84, Regis Resources was up 3.9% to $2.01, Northern Star rose 1.2% to $14.85, while ASX-listed shares in global producer Newmont, which acquired Newcrest Mining last year, were up 0.6% to $56.95.
Gold prices hit record high on rate cut hopes
The news: Gold prices raced to a record high overnight after Federal Reserve chair Jerome Powell reiterated that higher-than-expected inflation does not materially change the overall picture of economic policy this year.
The numbers: Spot gold rose 0.5% to USD2,292.31 ($3,493) per ounce after hitting a record high of USD2,294.99 earlier in the session. US gold futures settled 1.5% higher at USD2,315.
The context: Investors are buying gold in anticipation of the US Federal Reserve easing interest rates in 2024. Reuters reported that prices rose after Powell reiterated that a lower policy interest rate will be appropriate "at some point this year" during a speech at Stanford earlier today.
Investors still expect a first rate cut at the Fed's June policy meeting, even as stronger recent economic data has sown doubts about that outcome.
Gold, a hedge against inflation and a safe haven during times of political and economic uncertainty, has climbed over 11% so far this year, helped by strong central bank buying and safe-haven demand.
The sources: Reuters, US Federal Reserve
