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The Pilbara Minerals Ltd (ASX: PLS) share price may be trading lower on Friday but that looks unlikely to stop it from recording a strong weekly gain.

If the lithium miner’s shares end the week at $2.28, it will mean a weekly gain of 11%.

Incredibly, this will also mean Pilbara Minerals’ shares are up 160% since the start of the year.

Where next for the Pilbara Minerals share price?

Although the Pilbara Minerals share price has more than doubled in value this year, one leading broker still believes it can go higher.

According to a note out of Macquarie Group Ltd (ASX: MQG) from earlier this week, the broker has retained its outperform rating and $2.70 price target.

Based on where Pilbara Minerals shares trade currently, this suggests that they can climb a further 18% over the next 12 months.

What did the broker say?

Macquarie is bullish on Pilbara Minerals due to its very positive view on the outlook for lithium.

The latter was bolstered further this week when the company released the results of its second Battery Material Exchange (BMX) auction.

According to the release, the company intends to accept the highest bid of US$2,240/dmt for the intended 8,000dmt of cargo. On a pro rata lithia basis and inclusive of freight costs, this is approximately equivalent to a price of US$2,500/dmt (SC6.0, CIF China basis).

This was significantly higher than what Macquarie was expecting. Which it believes indicates that the positive price momentum in the lithium market is likely to continue.

As a result, the broker appears happy with its earnings forecasts, which are significantly higher than consensus estimates, backing up its price target on the Pilbara Minerals share price.

Overall, its analysts believe the company’s shares are good value at the current level.

The post Why Macquarie sees 18% upside in the Pilbara Minerals (ASX:PLS) share price appeared first on The Motley Fool Australia.

More reading

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• Here are the top 10 ASX shares today
• Top brokers name 3 ASX shares to buy today
• There are the 3 most traded ASX 200 shares so far today
• Why Accent, Calix, Pilbara Minerals, & Starpharma shares are racing higher

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 owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Firefinch Ltd (ASX: FFX) share price is deep in the red today.

Shares in the gold miner and lithium developer are currently trading 5.84% lower at 64.5 cents apiece, having at one stage been as low as 63 cents.

Let’s take a look at what’s been dragging Firefinch shares lower.  

What’s happening with Firefinch?

Investors have been quick to dump their shares in Firefinch today. Despite the bearish price action, the mining developer has not released any price-sensitive news.

As a result, there are a couple of catalysts that could explain why the Firefinch share price is struggling today.

Firstly, weakness in the spot gold price could be dragging shares in Firefinch lower. According to CNBC, the spot gold price is down 2.3% to a 1-month low of US$1,754.10 an ounce.

A second factor could be investors looking to lock in their profits after the recent rally in the Firefinch share price.

More on Firefinch

The Firefinch share price has been receiving increasing attention over the past few weeks.

Most recently, the company made headlines after announcing details of its inclusion in the VanEck Junior Gold Miners ETF (NYSE: GDXJ) via Twitter Inc (NYSE: TWTR). However, the gold miner and lithium developer retracted the tweet and provided clarification on the error.

Prior to the tweet clarification, shares in Firefinch rallied strongly after the company released a mixed half-year report.

The company realised gold production of 22,525 ounces for the half-year in line with guidance of 21,000-23,500 ounces. However, Firefinch’s net loss for the half-year grew to $6.28 million from $1.07 million.

Firefinch share price snapshot

Firefinch has several promising assets located in Mali. This includes the Morila Gold Mine, in which Firefinch has an 80% interest.

Firefinch runs the Goulamina Lithium Project in Mali, which is a joint venture with the Chinese lithium and chemicals company Jiangxi Ganfeng Lithium Co Ltd.

Despite sinking 7% in today’s session, shares in Firefinch remain 12% higher for the month.

Shares in the gold miner and lithium developer have also been strong for the majority of the year. Since the start of 2021, shares in Firefinch are up an astronomical 250%.

The post Firefinch (ASX:FFX) share price tumbles 6% but remains 12% higher for the month appeared first on The Motley Fool Australia.

More reading

• ASX lithium shares are rallying across the board today. Here’s why.
• Firefinch (ASX:FFX) share price slides following tweet clarification
• Firefinch (ASX:FFX) share price leaps 16% on half-year results

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Twitter. 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 Bruce Jackson.

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One of the biggest success stories on the Australian share market this year has been the Vulcan Energy Resources Ltd (ASX: VUL) share price.

Since the start of the year, the clean lithium company’s shares have rocketed 430% higher.

No doubt the investors in another Vulcan will be hoping for similar success if and when its shares land on the Australian share market.

What’s happening?

According to the Australian, Australia and New Zealand metals distributor Vulcan will soon be launching a cornerstone process aiming to raise $500 million via an initial public offering (IPO). And if all goes to plan, the company will hit the ASX boards before the end of the year.

The report notes that Vulcan is hoping to list on the share market with a valuation of at least $1 billion. And with the company forecasting an annual net profit of $70 million, this would give it an earnings multiple of approximately 14x upon listing.

The company notes that this will put it in a similar ballpark to plumbing and bathroom materials supplier Reece Ltd (ASX: REH), bathroom and kitchen supplier GWA Group Ltd (ASX: GWA), and diversified products company GUD Holdings Limited (ASX: GUD).

It appears as though Vulcan doesn’t want to be put into the same bracket as an arguably more comparable company, BlueScope Steel Limited (ASX: BSL). The steel products company’s shares are currently trading at just 5x estimated FY 2022 earnings.

What are people saying about Vulcan?

The Australia understands that fund managers are positive about Vulcan, noting that it is a solid, well-run business. Vulcan is also benefiting greatly from high steel prices and its strong market position.

Though, there also appear to be a few concerns about the cyclical nature of the business. Particularly given how the Auckland-based company generates the majority of its revenue from distributing steel products to the construction industry.

Time will tell if this is another successful IPO.

The post Are there new Vulcan shares about to hit the ASX? appeared first on The Motley Fool Australia.

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• ASX 200 Weekly Wrap: ASX puts earnings season to bed with another rise
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• ASX 200 Weekly Wrap: A mixed bag of earnings dominates ASX
• ASX 200 Weekly Wrap: Miners drag ASX back to earth
• 3 top ASX growth shares that could be buys

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 Bruce Jackson.

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The AMP Ltd (ASX: AMP) share price is having another disappointing day this Friday.

At the time of writing, AMP shares have sunk another 1% so far today and have plumbed a new all-time low of 98 cents a share. The company is presently trading at 99 cents a share.

Yes, AMP is today at its lowest share price point in its more-than-20-year history as a public company. The AMP share price has now slid more than 36.5% in 2021 so far. It’s also down by 35.3% over the last 12 months, and by an eye-watering 81.5% over the past 5 years.

So why AMP’s descent to these new lows today?

Well, there is no official news or announcements out of AMP itself that we can point to today. However, a report in the Australian Financial Review (AFR) today might shed some light.

The AFR reports that GPT Group (ASX: GPT) and Mirvac Group (ASX: MGR) “have been shortlisted” for a takeover of the running of the flagship AMP Capital Wholesale Office Fund.

Fund problems spark AMP share price fall?

A review of AMP’s fund is currently being conducted by investment bank group Jarden Australia, along with an independent advisory committee (IAC). This review was sparked after some institutional investors reportedly raised concerns over the fund’s future, according to the AFR.

The review’s joint recommendations were to go to the trustee board of the fund. The investors in the fund will be given the final say about what happens going forward.

AMP is reportedly keen to keep management of this fund in-house with AMP Capital. However, the review has now shortlisted GPT and Mirvac.

However, the report also reveals that all three members of the Independent Advisory Committee resigned yesterday. They will be replaced by the independent chair of AMP Capital funds Management, Ming Long, and another independent director, Bob McKinnon.

A spokesperson for the AMP Capital Wholesale Office Fund trustee board told the AFR that “the members of the IAC had a different view about how the process should be conducted as we move to its final stage”.

Perhaps it is this rapidly-changing situation that is causing some investors to bail out of AMP shares today.

At the current AMP share price of 99 cents, this company has a market capitalisation of $3.25 billion.

The post AMP (ASX:AMP) share price hits fresh lows amid advisory board resignations appeared first on The Motley Fool Australia.

More reading

• The AMP (ASX:AMP) share price hit an all-time low of $1 today
• The AMP (ASX:AMP) share price has fallen another 7% in a month. What’s next?
• Here’s why the AMP (ASX:AMP) share price is down 4% in a week
• How have ASX financial shares performed during the August 2021 earnings season?
• What does the future look like for the AMP (ASX:AMP) share price?

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 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 Bruce Jackson.

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The big four banks have outperformed the S&P/ASX 200 Index (ASX: XJO) over the past year. A flurry of monetary stimulus and central bank backing throughout the COVID-19 pandemic bolstered ASX 200 bank shares.

However, one fundie believes the best returns for the banking sector might be behind it. As fierce competitors make headway into the entrenched finance industry, fintech companies could be set to eat at least a portion of the bank’s lunch.

How ASX 200 banks could be challenged

Loyal shareholders of any of the big four banks have enjoyed handsome returns over the past 12 months. As a quick summary — below are the returns if you owned shares in these ASX 200 banking behemoths:

• Commonwealth Bank of Australia (ASX: CBA) up 57.6% to $103
• Westpac Banking Corp (ASX: WBC) up 53.5% to $25.90
• National Australia Bank Ltd (ASX: NAB) up 61.1% to $27.94, and
• Australia and New Zealand Banking Group Ltd (ASX: ANZ) up 60% to $27.80

For comparison, investing in the broader ASX 200 would have netted a return of 26% before dividends. Which is nothing to be sneezed at. Although, the worst performer of the big four dished out double this gain before dividends. This might have investors contemplating the potential of future returns from the banks.

Well, one fundie has shared their perspective, which might dispel some of the euphoria circulating among bank investors. In an interview with the AFR, co-head of equities at Antares Capital, Nick Pashias cast his doubts on the possibility of further upside to the big four constituents.

Namely, Pashias pointed towards the trend in the disintermediation of the banking sector. In other words, customers are seeing the benefit in fewer intermediaries being involved in financial processes. One glaring example is the explosion in buy now, pay later (BNPL) services, such as Afterpay Ltd (ASX: APT).

The disruption invoked by fintech companies has only accelerated over the last 24 months due to the implications of COVID-19.

As a result, Pashias states, “…one of the casualties may be not only our banks but banking more broadly. The rise of the fintech sector is here to stay, and although volumes and profits are still small, we believe they will chip away at the profit pools that banks have enjoyed for many years.”

Less is more when it comes to finance

Momentum has grown around a new financial business model, unique from that of ASX 200 bank shares, that doesn’t involve hefty interest charges to customers. Fintechs are taking a fresh approach to finance and looking for alternative ways to produce revenue.

In the case of BNPL, the income is predominantly from merchants, as the product adds value in bringing increased sales, improved conversion, and heightened customer loyalty.

This new model might find itself extending beyond credit for product purchases. Earlier in the week, InvestSMART unveiled its ‘fundlater‘ offering. This adds a BNPL-esque spin on the bank’s leveraged investing offering, which comes with interest repayments and the risks of margin calls.

In short, fundlater allows investors to invest up to $10,000 with an initial investment of $4,000. From there, the individual makes fixed monthly repayments with no margin calls, and no interest fees, aside from a $20 per month facility fee.

The product demonstrates yet another encroachment on the profit pool of ASX 200 banks.

The post Why this fund manager sees limited growth potential for ASX 200 banks appeared first on The Motley Fool Australia.

More reading

• What’s happening with the CBA (ASX:CBA) share price this week?
• How has the ANZ share price performed since reporting results?
• This year’s ASX 200 Santa Rally to get a whopping $84bn cash boost
• What this broker thinks of the Westpac (ASX:WBC) share price
• The NAB (ASX:NAB) share price is underperforming its big four peers so far today

Motley Fool contributor Mitchell Lawler owns shares of Commonwealth Bank of Australia. 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 Bruce Jackson.

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The ASX 50 index is home to 50 of the largest listed companies on the Australian share market.

While there are a number of quality options on offer in the index, two that could be in the buy zone are listed below.

Here’s what you need to know about these ASX 50 shares:

CSL Limited (ASX: CSL)

The first ASX 50 share to look at is CSL. It is one of the world’s leading biotherapeutics companies.

It has been a very positive performer over the last decade. This has been driven by successful acquisitions, its high level of investment in R&D activities, a growing plasma collection network, and its leading therapies and vaccines.

In respect to the latter, CSL’s portfolio includes lucrative and life-saving products such as Privigen, Hizentra, Idelvion, and Afstyla. But it certainly isn’t resting on its laurels. This year the company will spend approximately US$1 billion again on R&D. This is to ensure it has a pipeline of lucrative products to drive future growth.

While the pandemic has hit plasma collections and could lead to elevated costs in the near term, this headwind is only expected to be temporary.

One broker that remains positive on the company is Morgans. It currently has an add rating and $324.40 price target.

SEEK Limited (ASX: SEK)

Another ASX 50 share to look at is SEEK. It is the leading job listings company in the ANZ region and has a number of growing businesses around the globe.

During FY 2021, the company returned to form and reported a 58% jump in net profit after tax excluding significant items to $141 million.

This was underpinned by record ad volumes in the second half of the year amid easing COVID-19 restrictions. This ultimately led to SEEK reporting an average of 40 million monthly site visits during the year, which represents 10% growth on pre-COVID-19 levels.

According to a note out of Macquarie, its analysts are confident this positive form will continue. Particularly given how unemployment levels are tipped to fall materially following the pandemic, which should support job ad volumes.

Macquarie has an outperform rating and $37.00 price target on the company’s shares.

The post 2 high quality ASX 50 shares named as buys appeared first on The Motley Fool Australia.

More reading

• CSL (ASX:CSL) share price lifts amid ASX 200’s best day in 8 weeks
• 2 ASX shares that won’t stay cheap: fund manager
• Is the CSL (ASX:CSL) share price too expensive right now?
• ASX 200 tech shares are dragging the market on Monday
• These ASX 200 dividend shares are about to dish out $40bn to shareholders

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. The Motley Fool Australia has recommended SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX mining shares are plunging as sentiment towards hard commodities turn bearish, but a top broker is urging investors to buy this group of S&P/ASX 200 Index (Index:^AXJO) mining shares.

These ASX miners are exposed to aluminium and the outlook for the metal is shining bright, according to Morgan Stanley.

Not that you can tell today. The sell-off is indiscriminate and not even the aluminium price was spared.

Why this could be a buying opportunity for some ASX 200 shares

The focus of the bears is really on iron ore as the steel making mineral sinks deeper into bear territory.

Base metals are also falling in sympathy even though the drivers are different from the bulk commodity.

But it’s during these “sell everything” events that the best buying opportunities emerge.

Bullish outlook for aluminium

This time may be no different, especially for Aluminium as it’s delinked from the cost curve after more than a decade.

“Historically, when it has broken away significantly from the cost curve, we find that price remains elevated above the 90th percentile for ~2-3 years,” said Morgan Stanley.

“With the current break starting late 2020, this could show that higher prices could be sustained for some time to come.”

Upgrade cycle for ASX 200 shares exposed to aluminium

There are several fundamental factors that are supportive of the aluminium price too. Global supply for the metal is tight as downstream demand remains strong. This is leading to limited local inventory of the commodity and high global freight prices aren’t helping.

It turns out that China could also be providing a tailwind for aluminium. That stands in contrast to iron ore where China is blamed for the crash.

“More recently, some additional factors have added to this bullish outlook, including additional China domestic smelter production cuts in Sept due to power cuts, rising Chinese power costs, and cost push from rising alumina price (supply disruption driven),” added Morgan Stanley.

Best ASX 200 mining shares to buy now

The ASX 200 mining share that is most exposed to the aluminium upside is the South32 Ltd (ASX: S32) share price.

At the current spot price, South32’s aluminium business will account for around 38% of group revenue.

“Running ali only at spot, valuation sits at A$3.90/sh,” said Morgan Stanley.

“And spot FY22 FCF yield sits at 12%, showing S32 is well placed to return capital to shareholders.”

The broker is recommending the South32 share price as “overweight”.

Smaller beneficiaries

Another miner that will benefit is the Rio Tinto Limited (ASX: RIO) share price. Aluminium will contribute around 24% to total revenue in CY22 at spot price.

However, as it makes most of its cash from iron ore, Morgan Stanley is keeping its “equal weight” rating on the Rio Tinto share price.

This leaves the Alumina Limited (ASX: AWC) share price as the only other buy rated stock on the broker’s list. But Alumina won’t benefit as much as South32 from rising aluminium prices as it makes most of its income from alumina and not aluminium.

The post Use the sharp commodity sell-off to buy these ASX 200 mining shares appeared first on The Motley Fool Australia.

More reading

• The Soul Patts (ASX:SOL) share price is down 3% on Friday
• ASX 200 (ASX:XJO) midday update: Fortescue crashes, IRESS sinks
• Rio Tinto (ASX:RIO) share price breaks below $100 for the first time since November 2020
• 5 things to watch on the ASX 200 on Friday
• The South32 (ASX:S32) share price just hit a multi-year high

Motley Fool contributor Brendon Lau owns shares of Rio Tinto Ltd. and South32 Ltd. 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 Bruce Jackson.

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The S&P/ASX 300 Index (ASX: XKO) is set to finish the day lower, reversing all of yesterday’s gains.

At the time of writing, the ASX 300 is down 0.81% to 7,402 points.

Let’s take a look at which ASX companies are making moves on the ASX 300 chart.

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price is roaring 6.05% higher to $9.74 despite no news out of the sports betting company today.

It appears its shares are rebounding after losing 4.37% on Thursday, hitting a 52-week low of $9.13. This came regardless of PointsBet announcing a partnership with Major League Soccer (MLS) team Austin FC.

Novonix Ltd (ASX: NVX)

The Novonix share price is also pushing ahead on Friday, up 6.25% to $5.95.

Investors appear to be bullish on the lithium company’s future prospects as the sector heats up.

The S&P Dow Jones announced changes in the S&P/ASX Indices earlier this month. As such, Novonix will be officially included in the ASX 300 Index prior to the market open on September 20.

Australian Strategic Materials Ltd (ASX: ASM)

Another significant mover today is the Australian Strategic Materials share price, up 4.66% to $11.23.

The rare earth metals company’s shares are recovering from dropping to a monthly low of $10.05 on Wednesday. The company released its full statutory accounts this week, providing information about its activities throughout the year.

Which ASX companies are heading the other way?

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price is down a sizeable 11.13% to $15.33.

Investors are selling the company’s shares as the spot price of iron ore continues to slide. In May, the steel making ingredient was fetching for US$230 per tonne, but today’s prices are going for around US$107 per tonne.

Iress Ltd (ASX: IRE)

Also being weighed down by investors today is the Iress share price, down 9.31% to $12.27.

The financial technology company provided an update in regards to its failed takeover talks with EQT. It noted that discussions have since been concluded and that the parties have been unable to agree on a transaction.

The post Which ASX shares are looking to finish the week as the top movers on the ASX 300 today? appeared first on The Motley Fool Australia.

More reading

• Why Fortescue, IRESS, Newcrest, & Syrah shares are tumbling lower
• ASX 200 (ASX:XJO) midday update: Fortescue crashes, IRESS sinks
• Why the Fortescue (ASX:FMG) share price is down 8% today
• IRESS (ASX:IRE) share price sinks 13% after takeover talks end
• Fortescue (ASX:FMG) share price down as Chinese steel cuts speed up

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Chalice Mining Ltd (ASX: CHN) share price is plummeting today despite no news having been released by the company.

Though, the company’s share price might be suffering alongside the price of gold.

If that’s the case, Chalice isn’t alone in its struggles today. The ASX gold sector is a sea of red, with the Perseus Mining Limited (ASX: PRU) share price leading the plunge among the large caps, sporting a 6.6% fall.

The Chalice Mining share price is doing slightly better, having fallen 4.71% to trade at $7.48.

While Chalice Mining isn’t a pure-play gold producer, it currently holds a number of gold projects. However, it’s planning to spin off its Australian gold assets before the end of the year.

Let’s take a closer look at what could be weighing on the company’s share price today.

What’s weighing on Chalice’s stock?

The Chalice Mining share price is sliding today despite the company maintaining its silence. The company’s share price is seemingly being dragged down alongside the price of gold.

Over the last 24 hours, the price of gold has plunged from around US$1,795 an ounce to US$1,758.95 per ounce.

According to precious metal specialist and retailer Kitco, gold is struggling due to the United States’ retail sector gaining strength. The sector’s recovery could forebode a hawkish US Federal Reserve ahead of its upcoming interest rate announcement.

Though, Chalice’s struggles today could have more to do with market movements than the gold price’s dip.

Yesterday, the company was one of the S&P/ASX 300 Index‘s (ASX: XKO) best performers. The Chalice share price gained 6.3% yesterday for no obvious reason.

Today’s drop could be a correction following yesterday’s surge.

Chalice Mining share price snapshot

Despite today’s dip, the Chalice Mining share price has been performing well lately.

It has gained 74% since the start of 2021. It is also 377% higher than it was this time last year.

The post Why is the Chalice Mining (CHN) share price plunging on Friday? appeared first on The Motley Fool Australia.

More reading

• Why ASX 200 gold shares are sinking on Friday
• Here are the top 10 ASX shares today
• Which ASX shares are leading the way on the ASX 300?
• Which ASX shares are the top movers in the ASX 300 today?
• ASX 200 (ASX:XJO) midday update: Sydney Airport jumps, Qantas falls

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 Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is falling lower towards the end of the week and ASX 200 gold shares are among the losers. Shares in some of Australia’s largest gold miners are sharply down amid falling commodity prices.

Why ASX 200 gold shares are sinking on Friday

Gold prices fell to a one-month low overnight, falling below US$1,800 per ounce. It came as demand for the US dollar rebounds with investors expecting a US Federal Reserve tapering program and rising US Treasuries yields.

That has been reflected in ASX 200 gold shares on Friday. The Newcrest Mining Ltd (ASX: NCM) share price has fallen 2.9% at the time of writing to $23.83 per share. Shares in the Aussie gold and copper miner are now trading 3.3% above their 52-week low of $23.08 per share.

Newcrest is far from the only gold producer under pressure in the final trading session of the week. The Northern Star Resources Ltd (ASX: NST) share price has slumped 3.9% to $9.17 per share on Friday. Northern Star shares are now down 31.1% since the start of the year.

Evolution Mining Ltd (ASX: EVN) hasn’t been able to escape the losses either. The ASX 200 gold share is down 3.1% at the time of writing to $3.80 per share. That has seen Evolution’s market capitalisation edge below $7 billion on Friday afternoon.

On the smaller end, Chalice Mining Ltd (ASX: CHN) shares have been hit hard. The Chalice share price is down 4.6% on Friday afternoon but remains up an impressive 377% in the past 12 months.

Foolish takeaway

A number of ASX 200 gold shares are under pressure on Friday. It looks as though tumbling gold prices amid stronger US dollar demand has hurt the commodity-based shares heading into the weekend.

The post Why ASX 200 gold shares are sinking on Friday appeared first on The Motley Fool Australia.

More reading

• Why is the Chalice Mining (CHN) share price plunging on Friday?
• Why Fortescue, IRESS, Newcrest, & Syrah shares are tumbling lower
• ASX 200 (ASX:XJO) midday update: Fortescue crashes, IRESS sinks
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today

Motley Fool contributor Ken Hall 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 Bruce Jackson.

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