West African Resources leads gold rally as bullion soars
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The news: Gold extended its recent surge as investors continue to turn to the safe-haven commodity amid new tariffs by US President Donald Trump.
The numbers: ASX gold stocks West African Resources (2.3%), Northern Star Resources (0.6%) and Newmont (0.6%) saw the biggest gains by 1:30pm AEDT.
The wider materials sector dropped 0.5% as the ASX 200 index lowered 0.4%
Spot gold was last up 0.45% to USD2,873.91 ($4,594.73) an ounce, according to Bloomberg data.
The context: Global gold prices have been bolstered since Trump's inauguration last month, with the growing prospect of a trade war with China sending investors to the safe-haven asset.
However, Trump's aggressive foreign policy stance has also boosted the US dollar, making gold more expensive in China and pricing out would-be Chinese buyers. It meant a softer-than-usual bump in demand ahead of the Lunar New Year gifting season, which could have seen gold prices climb even higher.
The source: Bloomberg
