Why did ASX 200 gold shares rise today?

ASX 200 gold shares finished the day in the green today.

Gold explorers include Evolution Mining Ltd (ASX: EVN), Newcrest Mining Ltd (ASX: NCM) and Northern Star Resources Ltd (ASX: NST).

Let’s take a look at how these ASX 200 gold shares performed on the market today.

Gold futures lift

Northern Star shares rose 0.74% today to $8.13, the Evolution share price climbed 0.78% to $1.95, while Newcrest shares jumped 0.81% to $17.48. In contrast, the S&P/ASX 200 Index (ASX: XJO) finished 0.07% in the red.

Northern Star, Evolution and Newcrest are all major global gold producers. The gold price impacts company earnings and, therefore, investor sentiment.

ASX 200 gold shares jumped today after gold prices recovered overnight. The gold price lifted 0.4% to US$1674.69 an ounce.

In a research note today, ANZ economist Madeline Dunk said:

Gold price inched higher to USD1,674/oz as investors weighed tighter monetary policy against rising geopolitical and economic risks.

The US dollar recouped its early day losses, after release of strong US PPI numbers, but failed to weigh on gold prices.

Looking ahead, CPI data, due to be released on Thursday US time, may provide a guide on the US Federal Reserve’s plans for interest rates.

Commenting on the impact of this data on the gold price, Dunk added:

Tomorrow’s CPI number will be an important guide for the Fed’s tightening path. A stronger print would be negative for the gold price.

Share price snapshot

Newcrest shares have fallen 29% year to date, while the Northern Star share price has descended nearly 14%. Evolution shares have lost 52% since the start of 2022.

For perspective, the ASX 200 has shed nearly 11% year to date.

The post Why did ASX 200 gold shares rise today? appeared first on The Motley Fool Australia.

More reading

• Is the Northern Star share price on the comeback trail? Check these charts out
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday

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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