Gold stocks rise as global prices notch new record high
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The news: Gold stocks rose in the local market as global prices for the precious metal reached a fresh record high on the back of soaring investor demand.
The numbers: Bullion gained 1.1% to reach USD2,440.59 ($3,641.78) an ounce earlier on Monday, exceeding a previous intraday record seen last month, according to Bloomberg. It was last up 0.8% to USD2,434.64.
In the local market, gold majors Bellevue Gold (5.7%), Gold Road Resources (5.6%), Evolution Mining (5.2%) and De Grey Mining (4.5%) made up four of the top 10 performing ASX 200 stocks by 12:30pm AEST.
The context: Gold has been boosted in recent days as traders raised expectations for US interest rate cuts this year, with increasing optimism that the Federal Reserve could reduce borrowing costs as early as September.
The precious metal also gained on US data released last week, as easing inflation in April saw the US dollar fall.
Meanwhile, intensifying geopolitical risks in Russia and the Middle East — after a Ukrainian drone strike on a Russian refinery and a Houthi missile attack on an oil tanker in the Red Sea — helped to lift gold prices further.
The source: Bloomberg
