Gold stocks rally as bullion edges higher on US jobs data
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The news: Gold miners rallied on the ASX after a sector-wide slide on Wednesday, as bullion edged higher following new data that showed US job openings fell in July to the lowest level since the start of 2021.
The numbers: Bullion edged higher and was steady at just below USD2,500 ($3,729.17) an ounce by 1:45pm AEST, according to Bloomberg figures.
Westgold Resources (3.8%), Ramelius Resources (3.6%) and Red 5 (1.7%) were among the biggest climbers across the ASX 200 as materials, adding 0.17%, staged a minor comeback following Wednesday's 3.03% fall.
However, four of the sharemarket's biggest five gold producers by market capitalisation — Northern Star Resources (-0.5%), Newmont Corporation (-0.4%), Evolution Mining (-0.1%) and De Grey Mining (-0.7%) — extended losses.
The context: Bullion advanced following new figures in the US that added to signs of a cooling labor market, boosting bets for steep rate cuts, which would likely aid gold as it doesn’t pay interest.
Bullion has gained more than 20% this year, supported by growing optimism the US Federal Reserve will begin interest rate cuts in September. Robust over-the-counter purchases and strong haven demand due to conflicts in the Middle East and Ukraine have also helped the advance.
The source: Bloomberg
