Stock Pick

Category: Stock Market

  • Experts name 2 ASX growth shares to buy in October

    Broker looking at the share price on her laptop with green and red points in the background.

    Broker looking at the share price on her laptop with green and red points in the background.

    If you have room in your portfolio for some new additions in October, then you might want to consider the two ASX growth shares listed below.

    Both have recently been named as buys by experts and tipped to climb meaningfully higher from current levels. Here’s what you need to know:

    IDP Education Ltd (ASX: IEL)

    The first ASX growth share that has been named as a buy is language testing and student placement company IDP Education.

    IDP is the co-owner of the IELTS test, which is the English test that is trusted by more governments, universities, and organisations than any other. This puts it in a great position to benefit from increasing demand for language testing, particularly given its strong position in key markets like India.

    Goldman Sachs is a big fan of the company and is expecting strong underlying system demand to result its stellar earnings growth through to FY 2025. It commented:

    IEL is trading c.40% below its 5-yr average P/E premium to the ASX200 Industrials with a forecast 37% FY22-25E EPS CAGR, we remain Buy-rated. We have upgraded EPS in FY23/FY24 by 1.7%/0.8% on the back of the stronger FY22 result, continued strong revenue growth and margin expansion. The balance sheet is in a resilient position with c.A$40mn of net cash to facilitate any bolt-on acquisitions or ramp up in organic investment in new offices and technology.

    Goldman has a buy rating and $36.00 price target on the company’s shares.

    Life360 Inc (ASX: 360)

    Another ASX growth share that analysts have tipped as a buy is Life360.

    Its is a technology company that operates in the digital consumer subscription services market, with a focus on products and services for digitally native families.

    The company’s flagship product is the Life360 app, which has a whopping 40 million+ active users. It offers families features such as communications, driver safety, and location sharing.

    Analysts at Bell Potter are very positive on the company. This is due to its huge total addressable market and material cross selling opportunities following recent acquisitions. It commented:

    Life360 has the potential to leverage its large and growing user base to enter new markets and disrupt the legacy incumbents. An example is roadside assistance where Life360 launched a subscription-based product called Driver Protect which disrupted the market and helped enable monetisation of its user base. Other markets Life360 could potentially enter include insurance, item & pet tracking, senior monitoring, home security and/or identity theft.

    And while Bell Potter acknowledges that Life360 isn’t profitable yet, which has been weighing on its shares this year, it isn’t concerned by this. The broker points out that the company is “expected to be operating cash flow positive from 4Q2023 and has more than sufficient cash to fund its operations till then.”

    In light of this, its analysts see the weakness in the Life360 share price this year as a buying opportunity for investors. Bell Potter has a buy rating and $8.23 price target on its shares.

    The post Experts name 2 ASX growth shares to buy in October appeared first on The Motley Fool Australia.

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    Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Idp Education Pty Ltd and Life360, Inc. 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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  • Why did the Qantas share price have a lousy end to the week?

    A sad woman sits leaning on her suitcase in a deserted airport lounge as the Qantas share price fallsA sad woman sits leaning on her suitcase in a deserted airport lounge as the Qantas share price falls

    The Qantas Airways Limited Limited (ASX: QAN) share price suffered on Friday.

    Qantas shares dropped 4.2% and finished the day at $5.02. For perspective, the S&P/ASX 200 (ASX: XJO) fell 1.23% on Friday.

    Let’s take a look at what may have impacted the Qantas share price on Friday.

    Qantas shares fall

    Qantas shares may have dropped on Friday, but they were not alone among ASX travel shares. The Flight Centre Travel Group Ltd (ASX: FLT) share price fell 4.44% today, while Webjet Limited (ASX: WEB) shares lost 4.23%.

    ASX travel shares have struggled after airlines in the USA dropped overnight. Qantas, Webjet and Flight Centre all have operations in the USA. The Delta Air Lines Inc (NYSE: DAL) share price fell 3.56% in the USA, while American Airlines Group Inc (NASDAQ: AAL) dropped 3.92%. United Airlines Holdings Inc (NASDAQ: UAL) shares fell 2.98%.

    Airlines fell amid Hurricane Ian in Florida, recession fears and pending interest rate rises. Interest rate rises increase the costs for households, potentially limiting spending on travel.

    Meanwhile, closer to home, Flight Centre CEO Graham Skroo Turner has leapt to the defence of Qantas despite recent travel woes. In an article in The Australian, Turner said “most in the travel industry” blame border closures and lockdowns for Qantas’ recent service issues. He said:

    History will show or has already shown that shutting borders and dictating widespread lockdowns not only were ineffective in stopping COVID-19’s spread but caused enormous societal and collateral damage.

    Qantas recently revealed that CEO Alan Joyce received $2.3 million in base salary and other benefits in FY22, 15% more than in FY21.

    Qantas share price snapshot

    The Qantas share price has slid 11% in the past year, while it has gained 0.2% in the year to date.

    In comparison, the ASX 200 has lost 11.7% in the past year and 13% in the year to date.

    Qantas has a market capitalisation of nearly $9.5 billion based on the current share price.

    The post Why did the Qantas share price have a lousy end to the week? appeared first on The Motley Fool Australia.

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    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 recommended Flight Centre Travel Group Limited and Webjet Ltd. 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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  • Here are the top 10 ASX 200 shares today

    A woman gives two fist pumps with a big smile as she learns of her windfall, sitting at her desk.A woman gives two fist pumps with a big smile as she learns of her windfall, sitting at her desk.

    The S&P/ASX 200 Index (ASX: XJO) dumped most of Thursday’s gains today. The index closed 1.23% lower at 6,474.20 points.

    That saw it posting a 1.53% week-on-week tumble and a 7.34% fall for the month of September.

    Today’s suffering followed a rough session overseas. The S&P 500 Index (SP: .INX) fell 2.1% to a two year low on Thursday while the Dow Jones Industrial Average Index (DJX: .DJI) slipped 2% and the Nasdaq Composite Index (NASDAQ: .IXIC) dumped 2.8%.

    It might come as no surprise, then, that the S&P/ASX 200 Information Technology Index (ASX: XIJ) led today’s downfall. The tech sector plunged 2.6% to its lowest point since July on Friday.

    Meanwhile, the S&P/ASX 200 Financials Index (ASX: XFJ) dropped 2.3% ahead of an expected rate hike next week.

    It wasn’t all bad news, however.

    Both the S&P/ASX 200 Materials Index (ASX: XMJ) and the S&P/ASX 200 Energy Index (ASX: XEJ) closed in the green, gaining 0.7% and 0.1% respectively.

    So, which ASX 200 share outperformed all others on Friday? Let’s take a look.

    Top 10 ASX 200 shares countdown

    The index’s top performing share on Friday was newcomer Capricorn Metals Ltd (ASX: CMM). The company was added to the ASX 200 earlier this month.

    Its gains today came amid news Macquarie is expecting big things for its future. The broker has tipped the miner’s stock to lift to $3.30, slapping it with an outperform rating, as my Fool colleague James reports.

    Today’s biggest gains were made by these shares:

    ASX-listed company Share price Price change
    Capricorn Metals Ltd (ASX: CMM) $3.00 8.7%
    Silver Lake Resources Limited (ASX: SLR) $1.18 7.27%
    Regis Resources Limited (ASX: RRL) $1.56 6.85%
    St Barbara Ltd (ASX: SBM) $0.74 6.47%
    Ramelius Resources Limited (ASX: RMS) $0.715 5.15%
    West African Resources Ltd (ASX: WAF) $1.05 5%
    Perseus Mining Limited (ASX: PRU) $1.52 4.83%
    Northern Star Resources Ltd (ASX: NST) $7.83 4.54%
    AGL Energy Limited (ASX: AGL) $6.84 3.64%
    Gold Road Resources Ltd (ASX: GOR) $1.28 3.64%

    Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

    The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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    Motley Fool contributor Brooke Cooper 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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  • Novonix share price dips lower amid interest rate hike fears

    Man sits in front of laptop with head in hands.Man sits in front of laptop with head in hands.

    The Novonix Ltd (ASX: NVX) share price struggled on Friday amid losses seen across the ASX technology sector. The company’s shares closed down 2.49% on Friday.

    Shares of the battery metals and technology company ended the day at $1.76 each. Earlier today, they reached an intraday high of $1.79. and a low of $1.71.

    Today’s price action means its shares hit a new 52-week low, surpassing the previous 52-week low of $1.77 it reached on Wednesday.

    The S&P/ASX 200 All Technology Index (ASX: XTX) struggled today, too, ending with a 3.09% loss. It was also a tough day for the broader market, with the S&P/ASX 200 Index (ASX: XJO) closing 1.23% lower.

    There was no news from the company today to make sense of the sell-off in its share price. However, some developments have occurred for the company in the recent past. Let’s cover the highlights.

    What’s going on with Novonix?

    Novonix has had some negative news coverage over the last 10 days, which may have contributed to its share price downfall.

    The biggest news came on 20 September with Novonix’s auditor, PriceWaterhouseCoopers (PWC), noting a “material uncertainty” with the company existing as a going concern. as reported by my Fool colleague Zach.

    Reasons stated for the uncertainty was the fact that Novonix posted a $71 million loss in its annual report for FY22, along with a $40 million cash outflow, Zach said.

    More recently, Novonix could also be feeling the pinch of US jobless numbers coming in lower than expected on 29 September, leading to fears that the Fed will make further rate hikes to tame inflation.

    Investors may surmise that the higher interest rates get, the higher the likelihood the Fed will botch the soft landing it has been planning, thus steering them away from riskier investments.

    Novonix share price snapshot

    Novonix’s share price is down 80% year to date. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 13% over the same period.

    The company’s market capitalisation is around $878.45 million.

    The post Novonix share price dips lower amid interest rate hike fears appeared first on The Motley Fool Australia.

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    Motley Fool contributor Matthew Farley has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hansen Technologies and Life360, Inc. 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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  • Macquarie share price dives 4% to new 52-week low

    Disappointed man with his head on his hand looking at a falling share price his a laptop.Disappointed man with his head on his hand looking at a falling share price his a laptop.

    The Macquarie Group Ltd (ASX: MQG) share price is drifting lower in afternoon trade on Friday.

    At the time of writing, shares in the investment bank are trading 4% lower at $153.25 apiece on no news. This marks a new 52-week low for the company, as seen in the chart below.

    In broad sector moves, the S&P/ASX 200 Banks Index (ASX: XBK) is also trading 2% down on the day.

    TradingView Chart

    What’s up with the Macquarie share price?

    ASX bank shares have copped a beating in the second half of 2022. Following a strong start to the year, the sector now trades at a low point.

    Chief to the sharp downturn was the Reserve Bank of Australia’s (RBA) decision to lift policy interest rates in order to curb inflation.

    Whilst ‘in theory’ the rise in rates is a net positive for the banking sector, the reality is that Australia’s lending market is tremendously concentrated, with razor thin net interest margins (NIMs) on offer.

    In addition, Australia’s housing market has been on a near-vertical trajectory for years, meaning many borrowers may exceed their capacity with the rising rates.

    And with inflation remaining stubbornly high, the path of interest rate hikes looks set for the time being.

    Hence, company fundamentals are second-tier in the Macquarie investment debate at present, with the market sentiment dominating the numbers instead.

    Brokers still rate it a buy too, with 9 out of 14 analysts recommending to buy Macquarie shares at these prices, unchanged from June, per Refinitiv Eikon data.

    With the pullback to yearly lows, Macquarie now trades on a forward price-to-earnings (P/E) ratio of 15.9 times, above the GICS Industry median’s 14.5 times.

    It also trades at a price-to-book ratio of 2.2 times and delivered a mammoth $12.30 in earnings per share (EPS) last year – well above the industry median’s 51 cents per share.

    Despite these strengths, pressure continues to mount on the Macquarie share price, with today’s trading volume more than 130% of the 4-week average at more than 1.02 million shares.

    As such the Macquarie share price is down almost 16% in the past 12 months, and down 25% this year to date.

    The post Macquarie share price dives 4% to new 52-week low appeared first on The Motley Fool Australia.

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    Motley Fool contributor Zach Bristow 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 recommended Macquarie Group Limited. 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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  • Broker gives its verdict on the AGL share price post-coal exit plans

    an engineer in hard hat stands amid solar panels, part of a solar farm, as she holds a tablet in her hand and smiles.

    an engineer in hard hat stands amid solar panels, part of a solar farm, as she holds a tablet in her hand and smiles.

    The AGL Energy Limited (ASX: AGL) share price is defying the market weakness and pushing higher on Friday.

    In afternoon trade, the energy company’s shares are up 3% to $6.80.

    This compares favourably to the ASX 200 index, which is down 1.1% this afternoon.

    Why is the AGL share price outperforming?

    Investors have been buying AGL’s shares on Friday after a number of brokers responded positively to the company’s coal exit plans.

    For example, according to a note out of Morgans, its analysts have upgraded the company’s shares to an outperform rating with an $8.20 price target.

    Based on the current AGL share price, this implies potential upside of 20% for investors over the next 12 months.

    Morgans is also expecting a 5% dividend yield in FY 2022, which brings the total potential return on offer to 25%.

    What did the broker say about AGL’s coal exit?

    The note reveals that Morgans is positive on the company’s coal exit and believes its target of 2035 is achievable. It commented:

    We think the strategy in today’s announcement is sound. Bringing forward Loy Yang’s closure date is an acknowledgment that inflexible brown coal plants will struggle as more and more variable renewables enter the grid. AGL has set itself an achievable timeframe to make the transition and, in our view, correctly identified that storage and firming assets will be the key investments needed to retain some form of competitive edge as the grid decarbonises.

    In addition, the broker notes that electricity futures prices are strong, which bodes well for its earnings in the coming years. Morgans explained:

    We’ve lifted our forecast for EBITDA in FY24 onwards due to the continued strength of futures prices and making some allowances for battery investments. This is partially offset by higher coal plant rehabilitation costs in later years. Overall this leads to an increase in our valuation and price target of 2% to $8.81ps.

    All in all, Morgans appears to believe that the beaten down AGL share price is great value at current levels.

    The post Broker gives its verdict on the AGL share price post-coal exit plans appeared first on The Motley Fool Australia.

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    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.

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  • ‘Far from being a flash in the pan’: Liontown shares dip despite chair’s upbeat lithium price outlook

    a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.

    Shares of Liontown Resources Limited (ASX: LTR) are drifting lower today despite no market-sensitive news.

    At the time of writing, shares in the lithium player are trading 3% down at $1.45 apiece.

    While there’s been nothing price sensitive from Liontown today, the company did release its annual report for investors to digest.

    Optimism on lithium pricing

    In his address to the annual report, Liontown chairman Tim Goyder gave a high-level view of the company’s operations last financial year.

    Goyder spoke fondly of the company’s flagship asset, the Kathleen Valley Lithium project in Western Australia, noting it is progressing “rapidly towards development”.

    “At the heart of our success is the world-class quality, scale and location of the deposit [at Kathleen Valley],” he wrote.

    Liontown is on the path to becoming a “significant provider of battery minerals for the rapidly growing clean energy market”.

    This is now a concentrated space with only a few players currently successful in delivering metal to mine in the same process.

    All the hype boils down to the price of lithium, itself advancing to new all-time highs today at A$110,663 per tonne.

    Those unlocking the risk capital to mine and produce lithium will be rewarded with such handsome market prices, in theory.

    While there’s been some doubt on the longevity of the lithium rally, Liontown’s chairman is optimistic on future pricing.

    Far from being a flash in the pan, these remarkable pricing outcomes are being driven by a systemic shortage of lithium raw materials through the supply chain and a growing recognition that demand will continue to grow significantly out to 2030 and beyond, requiring a significant investment in new supply.

    Despite the optimism, Liontown shares are down more than 12% this year to date. They have also lost 12% over the past month of trade.

    The post ‘Far from being a flash in the pan’: Liontown shares dip despite chair’s upbeat lithium price outlook appeared first on The Motley Fool Australia.

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    Motley Fool contributor Zach Bristow 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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  • Why has the Lake Resources share price tumbled 17% in a week?

    A sad Carnaby Resources miner holds his head in his handsA sad Carnaby Resources miner holds his head in his hands

    The Lake Resources NL (ASX: LKE) share price has fallen 17.4% this week from the close of trade on 23 September to the time of writing today.

    That’s considerably more than the loss posted by the S&P/ASX 200 Materials Index (ASX: XMJ), which only dipped 1.41% over the same period.

    Other ASX lithium shares are also down during this time, including Pilbara Minerals Ltd (ASX: PLS), which is down 8.7% of its value. Allkem Ltd (ASX: AKE) also took a beating, losing 12.7%.

    Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has lost 3.29%.

    There’s no news from the company to make sense of the decline in the Lake Resources share price. However, some developments in the market unfolded. Let’s cover the highlights.

    What’s going on with the Lake Resources share price?

    On Monday, the Motley Fool reported that Lake Resources was among the top ten most shorted shares on the ASX, with a short interest ratio of 9.9% when the article was published.

    This follows insight in early September from research firm J Capital into why the Lake Resources share price might be targeted by short sellers. It claimed Lake Resources’ direct lithium extraction (DLE) technology was reportedly unproven and may not produce lithium in the clean way that the company expected, potentially producing toxic waste instead.

    Although my colleague James notes that Lake Resources has refuted J Capital’s claims, this negative commentary may still have a grip on the company’s share price, amid it falling to lower levels this week.

    More broadly, Lake Resources and other lithium shares could be feeling the bite of the prospect of interest rates rising even further, as well as the possibility that a ‘soft landing’ will not eventuate as the Fed hopes.

    My Fool colleague Tristian notes that these headwinds and others might culminate in a maelstrom of volatility we’ve witnessed over the past week.

    Lake Resources share price snapshot

    Shares in the company are currently trading for 87.5 cents apiece. Earlier today, shares made an intraday high of 90 cents and a low of 87 cents.

    The Lake Resources share price is down 13.12% year to date. Meanwhile, the ASX 200 has fallen 12.96%.

    The company’s market capitalisation is around. $1.22 billion.

    The post Why has the Lake Resources share price tumbled 17% in a week? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Matthew Farley 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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  • The Webjet share price is trading at 8-month lows. Is now the time to buy?

    A woman sits crossed legged on seats at an airport holding her ticket and smiling.A woman sits crossed legged on seats at an airport holding her ticket and smiling.

    The Webjet Limited (ASX: WEB) share price is pushing lower today and is now trading 4.1% in the red at $4.76.

    Webjet booked a trip down south earlier in the year and, after some sideways action, has begun to come in with a hard landing to today’s market price.

    The evolution of the Webjet share price for the past 12 months is seen in the chart below.

    TradingView Chart

    Is Webjet a buy?

    The travel and tourism industry has been one of the worst hit by COVID-19 lockdowns. However, it’s made somewhat of a comeback in 2022.

    According to The International Air Transport Association (IATA), travellers are expected to embark on a mammoth four billion trips in 2024 – more than 103% of the 2019 [pre-COVID] total.

    This is a stark difference from last year’s numbers. In 2021, overall traveller numbers were just 47% of the 2019 highs.

    Buying Webjet shares lends investors unique exposure to the travel and tourism segments, albeit with a completely different business model.

    Being in the services industry, and using software to generate revenue, means capital expenditure (CapEx) is light for Webjet.

    CapEx is the amount of funds required to grow and maintain its physical/fixed assets, like land and buildings. In its last half-year results, Webjet reported capital expenditure of $11.8 million, with $15 million in FY19.

    Airlines, on the other hand – another route to gain travel exposure – have enormous capital expenditure just to stay afloat.

    Over the same half-year period, CapEx for Qantas Airways Limited (ASX: QAN) was $581 million, down from a high of $1.2 billion in FY19 (expect numbers to return to 2019 levels).

    Hence, even though total debt levels have crept up for Webjet since FY19, only 21% of assets are funded by debt, and the percentage of debt to equity on the balance sheet is evenly split.

    Investors also received 18 cents per share in trailing dividends this year with a trailing dividend yield of 1.4%.

    What do the brokers say?

    Brokers certainly believe Webjet is a buy too. According to Refinitiv Eikon data, 10 out of 16 analysts urge clients to buy Webjet right now, with four saying it’s a hold.

    The consensus price target from this list is $5.97, suggesting around 25% return potential from the current Webjet share price.

    With low fixed expenses and the potential to benefit from a rebound in recovery, the bullish case is clear for brokers to recommend Webjet as a buy.

    The risk that numbers won’t return to previous highs remains a very real one, however. Nevertheless, the Webjet share price is down 24% over the past 12 months.

    The post The Webjet share price is trading at 8-month lows. Is now the time to buy? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Zach Bristow 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 recommended Webjet Ltd. 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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  • In a sea of red, why are ASX 200 gold shares shining brightly on Friday?

    a woman in a business suit holds a large solid gold bar in both hands with a superimposed image of a gagged gold line tracking upwards and featuring a swooping curved arrow pointing upwards.a woman in a business suit holds a large solid gold bar in both hands with a superimposed image of a gagged gold line tracking upwards and featuring a swooping curved arrow pointing upwards.

    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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    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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