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There are a lot of options for income investors on the Australian share market. So many it can be hard to decide which ASX dividend shares to buy.

To narrow things down, let’s take a look at a few that Goldman Sachs is tipping as buys this month. They are as follows:

Challenger Ltd (ASX: CGF)

The broker thinks that this annuities company could be an ASX dividend share to buy right now.

It likes Challenger due to its exposure to the superannuation market and the favourable sales environment for annuities. It explains:

CGF is Australia’s largest retail and institutional annuity provider across Term and Lifetime annuities with a funds management business. We are Buy rated on the stock. We like CGF because: 1) it has exposure to the growing superannuation market across Life and Funds Management; 2) higher yields should drive a favorable sales environment for retail annuities as well as an improvement in margins; 3) its annuity book growth looks well supported through a diversified distribution strategy.

In respect to dividends, the broker is forecasting fully franked dividends of 26 cents per share in FY 2024 and then 27 cents per share in FY 2025. Based on the current Challenger share price of $6.68, this will mean dividend yields of 3.9% and 4%, respectively.

The broker currently has a buy rating and $7.50 price target on its shares.

QBE Insurance Group Ltd (ASX: QBE)

Goldman Sachs also thinks that this insurance giant could be a top ASX dividend share for income investors to buy.

It likes the company due to its exposure to commercial rates. It explains:

We are Buy-rated on QBE because 1) QBE has the strongest exposure to the commercial rate cycle. 2) QBE’s achieved rate increases continue to be strong & ahead of loss cost inflation. 3) North America on a pathway to improved profitability. 4) Valuation not demanding. 5) Strong ROE.

The broker is forecasting dividends per share of 62 US cents (94 Australian cents) in FY 2024 and 63 US cents (95.5 Australian cents) in FY 2025. Based on the current QBE share price of $18.36, this equates to dividend yields of 5.1% and 5.2%, respectively.

Goldman has a buy rating and $20.90 price target on its shares.

Super Retail Group Ltd (ASX: SUL)

A third ASX dividend share that Goldman Sachs is bullish on right now is Super Retail. It is the owner of popular store brands BCF, Supercheap Auto, Macpac, and Rebel.

The broker believes the company is well-positioned to navigate the tough operating environment thanks to its vast loyalty program. It said:

We believe SUL will display resilience in a softer economic environment that is built upon its competitive advantage of high loyalty (~11.0m active members accounting for >75% of sales) and this will be further bolstered as the company launches the Rebel loyalty program and continues to build personalisation capabilities. Hence, we are Buy-rated on SUL.

Goldman expects Super Retail to pay fully franked dividends per share of 67 cents in FY 2024 and then 73 cents in FY 2025. Based on its current share price of $13.21, this will mean yields of 5.1% and 5.5%, respectively.

The broker has a buy rating and a $17.80 price target on its shares.

The post Goldman Sachs says these 3 ASX dividend shares are buys 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 positions in and has recommended Goldman Sachs Group and Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Challenger. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) share prices are always changing, which can open up compelling buying opportunities with the right businesses at the right price.

In this article, I’m going to examine where one leading fund manager is seeing value amid recent volatility and shifting valuations.  

Audinate Group Ltd (ASX: AD8)

This is the company behind Dante, a media networking solution that’s used in the professional audio-visual industry. It is used for numerous purposes including universities, conferences, recording studios, amusement parks, zoos, houses of worship, arenas and stadiums, theatres and so on.

Fund manager Philippe Bui from Medallion Financial Group wrote on The Bull that Audinate is a buy because this ASX tech share “still appears to be in the early stages of a long-term growth trajectory.”

Bui points out the ASX 200 share is “growing quickly” in the video segment of the market, yet the Audinate share price has fallen close to 30% since March 2024. He thinks it’s at an “attractive entry point” after the decline and the “strong” report it revealed in February.

In that FY24 half-year result, revenue rose by 47.7% to US$30.4 million, while net profit after tax (NPAT) grew from A$5.1 million to A$4.7 million.

The fund manager revealed that Audinate is the top holding in its ASX shares growth fund.

Challenger Ltd (ASX: CGF)

Challenger is an ASX 200 financial share which is the largest provider of annuities in Australia.

After a difficult period when interest rates were close to 0%, Challenger is recovering. It’s now able to offer annuities with more appealing yields to older Australians who want an income stream with interest rates now being much higher. Challenger says 2.5 million Australians are set to retire over the next 10 years, which could drive demand for annuities.

The fund manager said Challenger shares were trading on an “undemanding” price/earnings (P/E) ratio multiple, and it has a fully franked dividend yield of around 4%. According to the forecast on Commsec, the Challenger share price is valued at under 13x FY24’s estimated earnings.

Bui noted that Challenger recently reaffirmed that it expects its FY24 annual result to be at the top end of its normalised net profit before tax guidance range of between $555 million and $605 million.

The post ‘Attractive entry point’: Fundie says buy these ASX 200 shares now appeared first on The Motley Fool Australia.

More reading

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• Here are the top 10 ASX 200 shares today
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• 3 ASX growth stocks I’d buy with $5,000

Motley Fool contributor Tristan Harrison 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 Audinate Group. The Motley Fool Australia has positions in and has recommended Audinate Group. The Motley Fool Australia has recommended Challenger. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a very disappointing session and dropped deep into the red. The benchmark index fell 1.3% to 7,755.4 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 expected to fall again

It looks set to be another red day for the Australian share market on Wednesday despite a reasonably positive session in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 43 points or 0.55% lower. On Wall Street, the Dow Jones fell 0.3%, but the S&P 500 rose 0.3% and the Nasdaq stormed 0.9% higher. Both the S&P 500 and Nasdaq closed at record highs. This was thanks largely to Apple shares, which rose 7% due to its AI news.

Oil prices rise

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) will be on watch after oil prices edged higher overnight. According to Bloomberg, the WTI crude oil price is up 0.2% to US$77.87 a barrel and the Brent crude oil price is up 0.3% to US$81.85 a barrel. Optimism over summer fuel demand has boosted oil prices this week.

Collins Foods CEO resigns

The Collins Foods Ltd (ASX: CKF) share price will be on watch today after the KFC restaurant operator announced the exit of its CEO. According to the release, the Drew O’Malley has informed the board of his intention to step down effective 1 July. Kevin Perkins will remain in the role of interim managing director and CEO as the board undertakes a local and international CEO search. Perkins has been in charge on an interim basis while Mr O’Malley was on an extended leave of absence.

Gold price rises

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a better day after the gold price rose overnight. According to CNBC, the spot gold price is up 0.2% to US$2,331.3 an ounce. Traders were bidding the precious metal higher ahead of the release of US inflation data and the US Federal Reserve meeting.

Judo Capital joins the ASX 200

The ASX 200 index has a new member. After the market close on Tuesday, S&P Dow Jones Indices announced that building materials company CSR Ltd (ASX: CSR) will be removed from the ASX 200 index next week. This is subject to shareholder and final court approval of the scheme of arrangement which will see the company acquired by Compagnie de Saint-Gobain. Replacing CSR in the illustrious index will be business lender Judo Capital Holdings Ltd (ASX: JDO).

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Collins Foods and Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple. The Motley Fool Australia has recommended Apple and Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) investors will know tomorrow morning whether the US Federal Reserve will keep interest rates on hold or surprise markets with a rate cut. While there are no guarantees, the world’s most influential central bank will almost certainly not move to increase rates.

Either way, the Federal Open Market Committee will announce its decision overnight Aussie time tonight.

Should the FOMC move to cut rates from the current 23-year high 5.25% to 5.50% target range, I imagine the ASX 200 will have an absolute cracker of a day tomorrow.

That’s because markets have virtually priced out any odds of an interest rate cut this week.

This is despite the Bank of Canada cutting rates last week by 0.25% to the new 4.75%. The European Central Bank followed suit the next day, dropping rates by 0.25% to the new 3.75%. This was the first easing by the ECB since 2019, despite the bank noting that inflation in some areas was proving sticky.

But with the latest batch of US labour data showing the nation added 272,000 jobs in May, far surpassing consensus expectations of 185,000, investors are all but ruling out an interest rate cut announcement from Federal Reserve chair Jerome Powell.

With the resilient US economy likely to keep the heat on inflation, investors are now eyeing September as the earliest date that US and ASX 200 investors may see some rate relief from the Fed.

What are the experts saying on the interest rate outlook?

Commenting on the latest economic data out of the US, Sandy Villere, portfolio manager at Villere & Co said (courtesy of The Australian Financial Review):

This tells you there’s certainly not going to a cut in the short term, and with the bond yields going back up it’s putting a lot of pressure on the risk-on trade, which is probably small caps.

It’s just a function of interest rates and maybe a little higher for longer, and people have to recalibrate for that type of environment.

Ryan Detrick, chief market strategist at the Carson Group is now looking ahead for a potential Fed interest rate cut in September.

“No one expects the Fed to cut [rates next week], but will they open the door for a cut as soon as September is the big question on everyone’s mind,” he said.

Analysts are now keeping a sharp eye on the Fed’s dot plot projections.

“We expect the [Fed] will raise the dot plot from an anticipated three cuts to just one to two cuts for this year with a modest upside tweak to the end 2024 inflation forecasts,” Tom Kenny, a senior economist at ANZ Group Holdings Ltd (ASX: ANZ) said (quoted by the AFR).

“We should see the ‘dots’ show a central tendency for two 25-basis points-rate cuts, from three, this year, but there is a small chance they move to one cut – an outcome that would rock markets,” Chris Weston, head of research at Pepperstone Group added.

And the RBA?

As for the Reserve Bank of Australia, ASX 200 investors will have to wait until next Tuesday, 18 June for that interest rate decision.

According to the ASX rate tracker, only 5% of traders expect the Aussie central bank to cut rates from the current 4.35% this month. More than half of investors expect the RBA to hold tight into early 2025.

“We assume the RBA will lag easing, but now with global central banks starting to cut rates, the RBA is unlikely to remain alone forever,” George Tharenou, chief economist for Australia at UBS said.

Tharenou is forecasting ASX 200 investors will see the first RBA interest rate cuts in 2025.

The post Will the US Fed finally cut interest rates this week? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.

Upon retiring, Australians typically take one of five actions with their superannuation nest eggs, according to new research from Australian life insurer, TAL.

According to TAL’s Retirement White Paper, the most popular choice among retired Australians is converting their superannuation into a regular income stream via a pension account (34%).

The second most popular choice is leaving their money in their existing superannuation account (27%), followed by taking all of it or some of it out in a lump sum (15%).

About 11% of retirees moved some of their superannuation monies into a lifetime income stream, such as an annuity, and some of it into a regular income stream or pension account.

About 7% of retirees moved all of their superannuation into a lifetime income stream.

Were retirees happy with the decisions they made?

With the benefit of hindsight, it seems many Australian retirees would have made different decisions.

The TAL research showed only 56% of retirees who withdrew all or most of their superannuation said they were ‘happy’ or ‘very happy’ that they made that decision.

By contrast, 87% of retirees who moved their money into a lifetime income stream or a pension account were ‘happy’ or ‘very happy’ with that choice.

Ashton Jones, General Manager of Growth, Retirement & Wealth Partnerships at TAL, said there was a misconception that all decisions made in relation to superannuation were set in stone.

He said:

One of the misconceptions around taking up retirement products is that the decision is irreversible – and while this may be the case for some traditional annuities, lifetime income solutions can be designed flexibly to offer a range of exit pathways, from spouse or death benefits to the simple option of withdrawing from the product at any time.

There was a surge in superannuation benefits paid out last year amid more baby boomers retiring.

Average superannuation balance at retirement

The retirement age is generally defined as the time of life when you become eligible for the age pension.

The retirement age in Australia is 67 years.

According to the Australian Taxation Office (ATO), the average superannuation balance for an Australian aged 65 to 69 years is $428,738. The median is $207,540.

How much superannuation do you need at retirement?

The AFSA Retirement Standard says Australian couples need $690,000 in superannuation, plus a part-pension and debt-free home ownership, to afford a ‘comfortable retirement’. Singles need $595,000.

Alternatively, just $100,000 in superannuation for couples and singles, plus a part-pension and full home ownership, is enough for a ‘modest retirement’.

A comfortable lifestyle for retirees aged 65 to 84 years old costs $72,663 per year for couples and $51,630 for singles, according to AFSA.

The comfortable retirement standard allows for daily essentials costs, such as groceries, transport and home repairs, private health insurance, lots of exercise, leisure, social activities, occasional restaurant meals, an annual domestic holiday and a trip overseas every seven years.

A modest lifestyle costs $47,387 for couples and $32,915 for singles. It allows for the daily essentials plus basic health insurance, occasional exercise, leisure, and social activities.

AFSA’s estimates assume retirees draw down all their superannuation capital and invest it with a return of 6% per annum.

The post Retiring soon? Top 5 choices Aussies make with their superannuation money appeared first on The Motley Fool Australia.

More reading

• Analysts say these 5 ASX 200 growth shares are top buys
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Motley Fool contributor Bronwyn Allen 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.

If you have a penchant for ASX 200 growth shares like I do, then it could be worth checking out the five listed below.

They have been named as buys and tipped to grow strongly in the future. Here’s what you need to know about them:

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre could be an ASX 200 growth share to buy according to analysts at Morgans. It is one of the world’s leading travel agents.

The broker believes Flight Centre is positioned for growth after a difficult time during the pandemic. It notes that its transformed business model mean it is “well placed over coming years.”

Morgans currently has an add rating and $27.27 price target on its shares.

Megaport Ltd (ASX: MP1)

Another ASX 200 growth share that has been given the thumbs up is Megaport. It is a global provider of elastic interconnection services in data centres across the world.

Macquarie believes the company’s strong earnings growth can continue over the coming years thanks to operating leverage and increased penetration of its Megaport Cloud Router (MCR) and Megaport Virtual Edge (MVE) products.

Macquarie has an outperform rating and $18.00 price target on its shares.

TechnologyOne Ltd (ASX: TNE)

Bell Potter thinks growth investors should be buying the shares of enterprise software provider TechnologyOne.

This is partly because it believes TechnologyOne “can double revenue every five years or so via organic growth alone.”

Bell Potter has a buy rating and $18.50 price target on Technology One’s shares.

Treasury Wine Estates Ltd (ASX: TWE)

Another ASX 200 growth share that Morgans is bullish on is Treasury Wine.

It is feeling confident about its outlook thanks partly to its recent acquisition of DAOU Vineyards (DAOU) for US$900 million (A$1.4 billion). The broker highlights that “if TWE delivers on its investment case, there is material upside to our valuation.”

Morgans has an add rating and $14.03 price target on its shares.

Xero Ltd (ASX: XRO)

A final ASX 200 growth share that could be a buy according to analysts is Xero. It is one of the world’s leading cloud accounting platform providers.

Goldman Sachs is very positive on the company. It highlights that Xero is “very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$100bn TAM.”

The broker currently has a buy rating and $164.00 price target on its shares.

The post Analysts say these 5 ASX 200 growth shares are top buys appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Technology One, Treasury Wine Estates, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Macquarie Group, Megaport, Technology One, and Xero. The Motley Fool Australia has positions in and has recommended Macquarie Group and Xero. The Motley Fool Australia has recommended Flight Centre Travel Group, Megaport, Technology One, and Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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 Sebastian Bowen 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 Audinate Group, Pro Medicus, and SiteMinder. The Motley Fool Australia has positions in and has recommended Audinate Group and SiteMinder. The Motley Fool Australia has recommended Bapcor, Eagers Automotive Ltd, Flight Centre Travel Group, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Nvidia‘s (NASDAQ: NVDA) market cap exceeded Apple‘s (NASDAQ: AAPL) for the first time in more than two decades on June 5. The chipmaker’s market cap reached $3.01 trillion at the end of the day, compared with Apple’s market cap of $3.00 trillion, and made it the world’s second most valuable publicly listed company after Microsoft.

As of this writing, Nvidia’s valuation has pulled back to $2.97 trillion as Apple’s valuation rose to $3.02 trillion. But based on Nvidia’s recent growth trajectory, it could easily overtake Apple again and close in on Microsoft’s $3.15 trillion valuation. So can Apple maintain its position as the world’s second most valuable company through 2025?

Why is Apple’s growth slowing down?

From fiscal 2013 to fiscal 2023, which ended in September of last year, Apple’s revenue grew at a compound annual growth rate (CAGR) of 8% as its earnings per share (EPS) increased at a CAGR of 16%.

That growth was driven by its robust sales of iPhones (especially the iPhone 6 in 2014 and the 6S in 2015), the Apple Watch’s launch in 2015, and the expansion of its services ecosystem. It also bought back more than a third of its shares over the past ten years. But over the past two years, Apple’s growth engines gradually cooled off.

In fiscal 2023, its revenue declined 3% as its EPS stayed nearly flat. That deceleration was caused by the end of the 5G upgrade cycle for its iPhones, sluggish sales of Macs and iPads in a post-pandemic market, and tough currency headwinds.

For fiscal 2024, analysts expect Apple’s revenue and EPS to rise just 1% and 8%, respectively, as its iPhone sales stabilize, its Mac sales rise again, and it expands its services division. However, those are arguably tepid growth rates for a stock which trades at 27 times forward earnings. Its recovery could also be derailed by its market share losses in China, competitive challenges in India, and antitrust investigations of its services division in the U.S. and Europe.

So for now, Apple’s valuation doesn’t seem to be supported by its near-term growth rates. Instead, investors still seem to be paying a premium for it as a safe haven stock in a high interest rate environment. With $162 billion in cash and marketable securities at the end of its latest quarter, Apple can easily weather the near-term headwinds, buy back more shares, raise its dividend, and continue to expand through smart investments and acquisitions. Its plans to integrate OpenAI’s generative artificial intelligence (AI) services into its own first-party services could also keep it in the AI race.

But it could struggle to stay ahead of Nvidia

Apple’s deceleration coincided with Nvidia’s acceleration. Back in fiscal 2023, which ended in January of that year, Nvidia’s revenue growth flatlined and its adjusted EPS fell 25%. That slowdown was mainly caused by its weak sales of gaming GPUs for PCs in a post-pandemic market and macro headwinds for the data center market.

But in fiscal 2024, Nvidia’s revenue and adjusted EPS soared 126% and 288%, respectively. That acceleration was driven by its skyrocketing sales of data center GPUs for AI applications. The growing popularity of OpenAI’s ChatGPT and other generative AI platforms caused the market’s demand for those chips to quickly outstrip its available supply. Analysts expect its revenue and adjusted EPS to grow 98% and 109%, respectively, in fiscal 2025.

Nvidia can’t maintain those hypergrowth rates forever — and it will probably face more competitive and regulatory headwinds over the next few years — but its stock still looks reasonably valued at 47 times forward earnings. So if its data center GPU business keeps firing on all cylinders, its stock could have a lot more upside potential than Apple’s.

Apple probably won’t be worth more than Nvidia by 2025

Analysts expect Apple’s earnings to grow 10% in fiscal 2026. If it’s still trading at 27 times forward earnings, its stock price could rise to $215 at the end of calendar 2025, which ends in September of that year. That would only boost its market cap to around $3.3 trillion.

Nvidia’s adjusted earnings are expected to increase 33% in fiscal 2026. If it’s trading at 47 times forward earnings, its stock would be trading at about $170 with a market cap of nearly $4 trillion at the end of calendar 2025.

So even if their valuations cool off, Nvidia has a clear shot at eclipsing Apple’s market cap again next year. That said, investors shouldn’t forget that Apple has a solid track record of recovering from its cyclical downturns and reinventing itself with fresh products and services — so it’s far too early to claim that its business has fully matured.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Will Apple stock be worth more than Nvidia by 2025? appeared first on The Motley Fool Australia.

More reading

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• 4 top ASX 200 stocks to buy now for the AI revolution
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Microsoft, and Nvidia. Leo Sun has positions in Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX gold shares are taking a beating today, with significant declines across the board. Northern Star Resources Ltd (ASX: NST), Chalice Mining Ltd (ASX: CHN), and Newmont Corp (ASX: NEM) are all down, reflecting weaker gold prices this week.

Before this week’s slump, gold was on a tear. It rallied for the last 18 months, reaching numerous all-time highs.

Several catalysts are thought to be behind the buying spree. Among them, the People’s Bank of China (PBOC) increasing its reserves was one lever, according to BNN Bloomberg.

The PBOC has been a major buyer of gold bullion since before the rally in gold prices started. It held 72.8 million Troy ounces of gold at the end of May, an increase of 16% or 9.2 million Troy ounces since it began accumulating the metal en masse, BNN Bloomberg notes.

At the time of publication, the spot gold price is AUD$3,489 per ounce, down from all-time highs of nearly $3,600 per ounce last week. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down nearly 1.5% in afternoon trade on Tuesday.

Here’s a look at what’s unfolded and what it means for ASX gold shares.

ASX gold shares fall amid slump

Last Friday, gold recorded one of its worst trading sessions since 2020. It finished the day 2% lower after closing the previous session at all-time highs.

A strong US jobs report has reduced expectations for near-term interest rate cuts, strengthening the US dollar and weakening gold, The Wall Street Journal reported on Friday.

Additionally, the PBOC looks to have slowed its gold purchases in May. It didn’t buy any new gold, momentarily pausing an 18-month buying streak. This added to the bearish sentiment, the reporting says.

Although traders bought gold on Monday, it wasn’t enough to calm investors’ nerves today. The S&P/ASX All Ordinaries Gold Index (ASX: XGD) is down more than 5%, dragging ASX gold shares like Northern Star, Chalice and Newmont along with it.

Northern Star shares have slipped around 5% today amid the broader trend impacting gold stocks and now trade at $13.85 apiece.

Meanwhile, Newmont shares are down more than 3% today and are currently swapping hands at $61.64 apiece.

It looks as if investors are reacting to the diminished appeal of bullion, resulting in share price declines for the ASX basket of gold stocks.

Chalice Mining shares study update

Chalice Mining shares are also down nearly 8% today amid the broader segment weakness.

But the company also released an update on its metallurgical test work and pre-feasibility study (PFS) this morning for its Gonneville nickel-cobalt, copper and palladium project.

Chalice’s management indicated a potential upside for overall metal recoveries but noted that further tests are needed to quantify the impact. As my colleague James reported, the market’s response has been negative, likely due to the extended timeline, with production not expected to start until 2029.

This wasn’t enough to overcome the negative sentiment in ASX gold shares today. Coupled with the general decline in mining stocks today, Chalice shares have taken a significant hit and are now down nearly 79% in the last 12 months.

Takeaway: Fools gold

ASX gold shares remain under pressure today, with Northern Star, Chalice Mining and Newmont all experiencing notable drops. The broader decline in the gold market, influenced by strong US economic data and The PBOC’s halt in gold purchases, looks to have significantly impacted this basket.

Investors in ASX gold shares should keep a close eye on these economic indicators and market trends moving forward.

The post Why are ASX gold shares being trashed on Tuesday? appeared first on The Motley Fool Australia.

More reading

• Why Chalice Mining, Northern Star, Peninsula Energy, and Service Stream shares are sinking
• These are the 10 most shorted ASX shares
• Here are the top 10 ASX 200 shares today
• Why this jumbo ASX gold stock is targeting a copper pipeline
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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.

S&P/ASX All Ordinaries Index (ASX: XAO) shares rose by 0.49% in May, clawing back a sliver of their 2.72% fall in April.

Never-ending speculation as to what will happen next with interest rates is keeping volatility high.

Meantime, market analysts on CommSec see buying opportunities with three ASX All Ords shares.

Based on consensus forecasts, these stocks were raised to ‘strong buy’ status last month.

3 ASX All Ords shares lifted to strong buy ratings in May

Paladin Energy Ltd (ASX: PDN)

According to CommSec, the consensus rating for Paladin shares rose to a strong buy on 20 May.

Paladin Energy is a uranium miner operating various projects in Africa and Australia.

The Paladin share price is currently $14.43, up 5.87% today and up 2.85% over the past year.

The ASX All Ords share hit a 52-week high of $17.98 last month. Since then, it has fallen steeply.

Mader Group Ltd (ASX: MAD)

The consensus rating on Mader shares was upgraded to a strong buy on 31 May.

Mader Group is a maintenance services company contracting to the mining sector. The company provides specialised labour to maintain and repair heavy mobile and plant equipment. 

The Mader share price is currently $6.10, up 0.33% today and up 17.3% over the past year.

There was no official news from the ASX All Ords company last month.

DroneShield Ltd (ASX: DRO)

The consensus rating for this ASX All Ords share rose to a strong buy on 20 May.

DroneShield develops and sells hardware and software systems capable of detecting and defending against military drones.

The DroneShield share price is $1.31, up 0.77% today and up a staggering 444% over the past year.

Bell Potter upgraded its rating on DroneShield to buy at the beginning of the month. It put a 12-month share price target of $1 on the stock. At the time, the ASX All Ords share was trading for just 83 cents.

The broker said:

DroneShield is now well placed to capitalise on the growing demand for C-UAS solutions in response to current global tensions and the evolution of modern warfare. Our forecasts likely remain conservative relative to the current sales pipeline, however the risk of government delay remains prevalent in contracts of this nature. With the SP now trading near the issue price, we upgrade our recommendation to BUY.

If you had followed the broker’s advice and bought DroneShield shares at the time, you would have made some very handsome short-term profits.

Over the month of May, the ASX All Ords share skyrocketed 36%, largely due to a major contract win announced on 22 May.

DroneShield told the market it had received a repeat order worth A$5.7 million from a United States Government customer for several of its CUxS (Counter-UxS) systems.

That news set off a steep and ongoing increase in the share price that is continuing this month.

The post 3 ASX All Ords shares raised to ‘strong buy’ status in May appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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 DroneShield and Mader Group. The Motley Fool Australia has positions in and has recommended Mader Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.