ASX gold shares race higher after gold price hits record high

It has been a great day to have ASX gold shares in your investment portfolio.

In morning trade, the gold sector is charging higher with solid gains being seen across the board.

Here’s a summary of how some ASX gold miners are performing today:

• The Bellevue Gold Ltd (ASX: BGL) share price is up 3%.
• The Evolution Mining Ltd(ASX: EVN) share price is up 1.5%.
• The Newmont Corporation(ASX: NEM) share price is up 2.5%.
• The Northern Star Resources Ltd (ASX: NST) share price is up 3%.
• The Ramelius Resources Ltd (ASX: RMS) share price is up 2.5%.
• The Regis Resources Ltd (ASX: RRL) share price is up 3%.

This has driven the S&P/ASX All Ords Gold index 2.6% higher this morning.

Why are ASX gold shares rising?

Investors have been bidding gold stocks higher today after the price of the gold price stormed to a record high overnight.

According to CNBC, the spot gold price settled up 1.6% at an all-time closing high of US$2,467.8 an ounce. And during the session, the precious metal hit a new intraday record high of US$2,474.5 an ounce.

This was driven by optimism over the outlook for interest rates after June’s softer US inflation data and some recently dovish comments from the US Federal Reserve Chair, Jerome Powell.

In fact, the share market is so confident that rates are going lower that they are now pricing in a 100% probability of a rate cut in September according to the CME FedWatch tool.

Is it too late to invest?

UBS analyst Joni Teves doesn’t believe that it is too late to invest. Teves commented:

Interest to ‘buy-the-dip’ remained prevalent among investors amid strong sentiment towards gold, which is likely why the market was quick to rally on soft U.S. data prints and dovish Fed expectations. With the market sitting just above the psychological $2400 level, we think risks are skewed to the upside. We think positioning remains lean and there’s space for investors to build gold exposure.

And as I mentioned here earlier this, Bell Potter believes that Capricorn Metals Ltd (ASX: CMM) shares are cheap at current levels.

It has a buy rating and $6.53 price target on the ASX gold share. It explained:

CMM’s management team has a track record of capital efficient project funding, development, commissioning and operation. In our view, FY25 and FY26 should benefit from higher revenue and EPS increases by 32% and 6% respectively. CMM is a sector leading gold producer with a strong balance sheet, a management team with an excellent track record of delivery and clear organic growth options to lift group production to 270kozpa.

The post ASX gold shares race higher after gold price hits record high appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Goldman Sachs says this ASX gold stock is a buy
• 5 things to watch on the ASX 200 on Tuesday
• Why Aussie Broadband, Bellevue Gold, Lifestyle Communities, and Star shares are falling
• Where to invest $10,000 into ASX 200 shares

Motley Fool contributor James Mickleboro 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.