Why are ASX 200 gold shares going gangbusters today?

rising gold share price represented by a green arrow on piles of gold blockrising gold share price represented by a green arrow on piles of gold block

It’s been a fairly vicious day for ASX 200 investors and the S&P/ASX 200 Index (ASX: XJO) so far this Wednesday. At the time of writing, the ASX 200 has tanked by a nasty 1.04%, pulling the index down to just over 7,190 points. But something else entirely is happening with ASX 200 gold shares.  

Take the ASX 200’s largest gold share, Newcrest Mining Ltd (ASX: NCM). The Newcrest share price is currently up a rosy 2.31% at $29.26 a share:

Its peer Northern Star Resources Ltd (ASX: NST) has gained an even more impressive 3.32% to $13.69 a share.

But it’s not just the big dogs. Evolution Mining Ltd (ASX: EVN) shares have shot up 3.88% to $3.62, while De Grey Mining Limited (ASX: DEG) has rocketed 5.13% to $1.64. Gold Road Resources Ltd (ASX: GOR) is performing similarly, climbing a happy 5.8% to $1.92 a share.

So what on earth is going on with these ASX 200 gold shares today that have this corner of the market bucking the Index so comprehensively?

Why are ASX 200 gold shares going to the moon today?

Well, we don’t have to look too far to find an answer.

The gold price itself has seen a significant bump over the past 24 hours or so. As my Fool colleague flagged this morning, gold shot back up over the US$2,000 per ounce price point. The precious metal climbed 1.6% overnight alone and is now asking just over US$2,020 an ounce.

It was only a few days ago that gold was going for around US$1,980 for that same ounce, so this is a significant appreciation that we have seen this week so far.

As such, it’s not too surprising to see ASX 200 gold shares light up the ASX sky today. In fact, the gold sector is the only ASX sector in the green today, with all others nursing heavy losses.

Today’s moves are certainly fulfilling ASX 200 gold shares’ traditional reputation as a safe haven, considering the turmoil we are seeing in the broader market. But let’s see what the rest of the week has in store for this ASX sector.


The post Why are ASX 200 gold shares going gangbusters today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Newcrest Mining. 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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