Gold prices surge to new record, with ASX miners in tow
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The news: The spot price of gold has surged past USD3,800 ($5,783.7) per ounce for the first time as the US dollar fell ahead of a meeting between US President Donald Trump and congressional leaders on a crucial short-term government spending bill.
The numbers: At 3:40pm AEST, the spot price of gold had lifted 1.23% to USD3,806.26 per ounce while the US dollar dropped 35% to buy $1.52.
Four of the top 10 biggest gainers on the ASX 200 were gold miners. They were led by Greatland Resources which had lifted 4.8% to $7.48. Evolution Mining (+4.4%), Ramelius Resources (+3.7%) and Newmont Corporation (+3.6%) also gained.
The context: The US dollar softened on Monday (AEST) – which can make US-denominated bullion relatively more attractive – a day before funding for the US federal government is due to expire.
If an agreement on a short-term funding bill cannot be reached, US federal government departments and functions will enter a shutdown. This could also result in mass staff cuts, while essential staff will have to work without pay.
