Mining stocks rally after gold hits record high
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The news: Gold miners led gains on the ASX 200, with eight of the top 10 stocks opening in green. The rally was driven by a surge in spot gold prices, which hit a record high of USD4,945 ($7,222) an ounce at 12:29pm AEDT.
The context: Gold has pushed past USD4,900 an ounce for the first time, driven by ongoing geopolitical tensions, a softer US dollar and expectations of US Federal Reserve interest rate cuts. Silver and platinum prices also hit fresh record highs.
This move followed comments from Trump on Thursday that US had secured total and permanent access to Greenland in a deal with NATO, whose head said members would need to step up their commitments to Arctic security amid threats from Russia and China.
Markets are also pricing in two 0.25 percentage point rate cuts from the Federal Reserve in the second half of the year, boosting the appeal of non-yielding assets such as gold.
Elsewhere, spot silver surged to a record USD96.58 an ounce, while spot platinum rose 4.6% to USD2,601 an ounce.
