2 ASX 200 mining shares performing today amid a volatile gold price

These two ASX 200 gold shares are slightly in the green today amid a volatile gold price.

The Evolution Mining Ltd (ASX: EVN) share price is pushing 3.03% higher today. Meanwhile, the Northern Star Resources Ltd (ASX: NST) share price is rising 0.51%.

Let’s take a look at what is happening to the gold price.

Gold price rebounds and retreats

The Gold price rebounded strongly overnight to more than US$1940 per ounce before retreating. Trading economics data shows gold jumped to US$1744.78 per ounce from US$1709.14 before retreating back. Gold is now priced at US$1728.37 a tonne at the time of writing.

Spot gold recovered from its lowest level since August 2021, according to a Reuters report published on CNBC.

This followed news out of the US that inflation jumped 9.1% in June. Gold can be considered an inflation hedge, however, rate rises can also negatively impact the gold price.

In a note to clients cited by kito, CPM Group analysts said:

While in theory gold prices should benefit from higher inflation numbers, the reality is that these higher inflation figures suggest that the Fed is likely to become even more aggressive in rasing rates to quell strong inflation.

This is resulting in a stronger U.S. dollar versus other major currencies as well as placing a lid on future inflation expectations.

Share price snapshot

The Evolution share price has lost 51% in the past year, while it is falling 41% year to date.

Meanwhile, Northern Star shares have lost more than 34% in a year and 26% year to date.

In comparison, the S&P/ASX 200 Materials Index (ASX: XMJ) has fallen nearly 17% in a year and 11% year to date.

The post 2 ASX 200 mining shares performing today amid a volatile gold price appeared first on The Motley Fool Australia.

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More reading

• The best and worst ASX All Ords mining shares of FY22
• Why has the Newcrest share price lost its shine of late?
• 5 things to watch on the ASX 200 on Thursday
• What’s the outlook for Northern Star share price in FY23?
• Why did the Evolution share price crash 47% in FY22?

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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