2 ASX 200 gold mining shares getting plastered with new multi-year lows

A tough day on the ASX has led these two gold mining shares to hit a multi-year low today.

The Newcrest Mining Ltd (ASX: NCM) share price dropped to multi-year low of $19.06 during early afternoon trade.

While slightly recovered, its shares are currently down 3.14% to $19.14.

On the other hand, the Evolution Mining Ltd (ASX: EVN) share price also hit a multi-year low of $2.31 during midday.

At the time of writing, its shares are down 4.90% to $2.33 apiece.

What’s happened to both of these gold mining shares?

While no news has come out of either company today, it’s apparent that a broader decline on the ASX is attributing to the fall.

The S&P/ASX 200 Resources (ASX: XJR) index is one of the worst performers on Monday, down 1.53% to 5,005.9 points.

A general weakness in commodity prices is dragging down gold and mining shares amid investors’ uncertainty on the economic outlook.

United States inflation numbers for June are set to be released this Wednesday along with the domestic jobs data on Thursday.

Undoubtedly, the market will be closely looking at the readings that come out of both reports.

If these numbers are high like the previous month, it could lead the Federal Reserve to ramp up interest rates again.

In addition, investor risk appetite for gold has receded over the past week which has piled on selling pressure.

The spot price of gold has been on a downwards path to trade below the psychological US$1,800 barrier. Currently, the yellow metal is fetching for US$1,740 per ounce.

Traditionally, in times of uncertainty and volatility, gold is considered a safe haven for investors to park their money.

However, with higher interest rates from central banks to cool inflation, investors tend to shift their assets into government bonds.

Looking at the latest figures, the Australian government bond yields range from 2.58% to 3.69% depending on the length of time.

Foolish takeaway

Despite the recent falls of both company shares, a small exposure to gold can be beneficial for any investor portfolio.

Even in the current economic climate, holding established gold mining companies with a long-term horizon can reap strong rewards.

The post 2 ASX 200 gold mining shares getting plastered with new multi-year lows appeared first on The Motley Fool Australia.

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More reading

• Is this a good time to go digging for ASX 200 mining shares for FY23?
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• Is now the time to be buying beaten down ASX 200 mining shares?
• Here’s how the Newcrest Mining share price glamoured in FY22

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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