In a sea of red, why are ASX 200 gold shares shining brightly on Friday?

ASX 200 gold shares are having a stellar end to the week as the gold price recovers from two-year lows earlier in the week.

Among the gold explorers rising are Newcrest Mining Ltd (ASX: NCM), Northern Star Resources Ltd (ASX: NST) and Evolution Mining Ltd (ASX: EVN).

So why are ASX 200 gold shares having such a good day?

Gold prices recover

Newcrest shares are rising nearly 2.97%, Northern Star Resources shares are up 3.41% and Evolution Mining shares are 2.52% in the green. Other gold miners rising include St Barbara Ltd (ASX: SBM), up 5.4%, as well as Silver Lake Resources Limited (ASX: SLR) and Regis Resources Limited (ASX: RRL), both rising 5% and 4.8% respectively.

The spot gold price is up 0.15% to US$1671 an ounce at the time of writing, CNBC data shows. However, the gold price has recovered 2.5% from the more than two-year low of S$1629.50 on Monday afternoon.

The gold price fluctuated overnight as investors weighed up a slight fall in the US dollar and potential US rate hikes. Commenting on the gold price, OANDA senior analyst Edward Moya, quoted by the CNBC said:

A slightly weaker dollar today might give some relief… but the key takeaway should still be what’s happening with yields, the short end of the curve is still rising strongly.

You’re probably looking at a gold market that’s still going to react to everything about the dollar, everything about Fed expectations.

Meanwhile, St Barbara yesterday confirmed it is in discussions with operators in the St Leonora region regarding “a potential business combination or combinations” to unlock “operating and development synergies in the region”.

The post In a sea of red, why are ASX 200 gold shares shining brightly on Friday? appeared first on The Motley Fool Australia.

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More reading

• Why AGL, Northern Star, Qualitas, and Rio Tinto shares are pushing higher today
• Own Evolution Mining shares? Get ready to dig into your dividends
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Own Northern Star shares? Here’s some great news about your dividends

Motley Fool contributor Monica O’Shea 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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