Vault Minerals leads gold selloff as spot price lowers
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The news: Gold stocks retreated on the ASX, tracking a decline in spot gold in morning trade.
The numbers: Gold miners made up six of the worst 10 performing ASX 200 companies by 12:30pm AEDT. Vault Minerals (-2.7%), Westgold Resources (-2%), Bellevue Gold (-1.6%), Ramelius Resources (-1.5%), Northern Star Resources (-1.5%) and West African Resources (-1.2%) were worst hit by the selloff.
The materials sector (0.7%), buoyed by iron ore stocks, was the best performing sector as the ASX 200 rose 0.3%.
Spot gold was down 0.3% to USD2,693.97 ($4,345.04) an ounce.
The context: Spot gold edged lower on a possible technical correction, the Wall Street Journal reported, after front-month gold futures climbed 1.3% on Friday.
However, the upcoming inauguration of US President-elect Donald Trump is expected to drive capital flows into gold as a safe haven asset. Many economists predict the arrival of fresh tariffs will prolong stubborn inflation and trigger further geopolitical uncertainties.
The source: WSJ
