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Is the brutal sell-off in ASX mining shares the best buying opportunity of 2021 or warning that investors should run for cover?

The S&P/ASX 300 Metal & Mining (INDEXASX: XMM) index collapsed around 8% since hitting a record high last month.

Euphoria turned to gloom as the market fretted over concerns that commodity prices have past their peak. The bearish sentiment was even more pronounced after China said it will release a range of metals from its strategic reserves to curtain rising prices.

Why ASX mining shares are crashing

This triggered a big bout of profit taking on the likes of the IGO Ltd (ASX: IGO) share price, OZ Minerals Limited (ASX: OZL) share price and Alumina Limited (ASX: AWC) share price.

While iron ore isn’t on the list of commodities that China is selling, the Rio Tinto Limited (ASX: RIO) share price and Fortescue Metals Group Limited (ASX: FMG) share price have also been caught up in the sell-off.

Use crash as buying opportunity for ASX miners

However, a number of experts have commented that China can only have a short-term impact on commodity prices at best.

This is because, unlike the last commodity supercycle, demand for metals is coming from other major economies as well.

Further, ASX miners are starting to look cheap, according to the analysts at Morgan Stanley.

ASX mining shares looking cheap vs. other sectors

Using its proprietary bottom-up data, the broker found that ASX miners have traded around 6 times EV/EBITDA over the last decade.

With the underperformance of the sector, the S&P/ASX 200 Index (Index:^AXJO) excluding ASX banks and miners has risen to around 14 times.

“The mean ratio of mining EV/EBITDA vs this other group over the past decade is 0.55x,” said Morgan Stanley.

“Mining relative value now sits 2.2 standard deviations below mean, suggesting compelling value on this metric.”

ASX mining shares to buy today

ASX miners also look undervalued on a comparative EV/revenue and P/E basis to the ASX 200 ex banks and miners.

For this reason, the broker is urging investors to use the sell-off as a buying opportunity and to go overweight on the sector.

Some of its key ASX mining picks are the South32 Ltd (ASX: S32) share price, the Alumina share price and Newcrest Mining Ltd (ASX: NCM) share price.

The post Are crashing ASX mining shares an opportunity or a disaster to run from? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most active ASX 200 shares today
• ASX share market fears ease as RBA’s inflation target proves difficult to hit
• ASX gold shares are sliding today
• Did the US Federal Reserve just ring the inflation warning bell?
• ASX 200 down 0.3%: Coles and Challenger updates, gold miners sink

Brendon Lau owns shares of Fortescue Metals Group Limited, Newcrest Mining Limited, OZ Minerals Limited, Rio Tinto Limited, and South32 Ltd. Connect with me on Twitter @brenlau.

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 Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has gone up 27% in 2021 alone, can it still be counted as a buy?

Just like the other big banks of Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd (ASX: NAB), ANZ is seeing a recovery of economic conditions.

In the first half of FY21, for the six months to 31 March 2021, ANZ experienced a credit provision release of $491 million.

Statutory profit after tax for the half-year was $2.9 billion, up 45% on the previous half. Continuing cash profit was up 28% to $2.99 billion. However, cash profit for continuing operations before credit impairments and tax was down 10% to $3.94 billion.

The ANZ balance sheet continues to strengthen, with the APRA common equity tier 1 (CET1) ratio increasing to 12.4% at the end of the first half. That’s an increase from 11.3% at September 2020 and 10.8% at March 2020.

ANZ CEO Shayne Elliot said:

Following the trends of the first quarter, all parts of our business performed well. Costs were down 2% and we also increased investment in new digital capability that will provide ongoing productivity improvements and better customer outcomes.

Australia retail and commercial had another good half, becoming the third largest home lender in the market. Deposits performed well, with retail and small business customers behaving prudently by building solid savings and offset balances through the half.

Improving credit conditions resulted in a release of almost $500 million during the half. While the pandemic hasn’t resulted in large credit losses to date, we still have almost $4.3 billion in reserve if conditions deteriorate.

Capital generation was a feature which, along with our already strong balance sheet and prudent management through an incredibly volatile period, meant we were able to return our dividend to a level more in line with our target and sustainable payout ratio.

ANZ’s board decided to double the dividend to $0.70 per share.

But is the ANZ share price a buy now?

The broker Morgans is still bullish on the ANZ share price with a price target of $34.50 over the next 12 months. Both the dividend and profit were larger than expected. The broker thinks that the bank is doing the right things to lower its cost base.

On Morgans’ numbers, ANZ is valued at 13x FY21’s estimated earnings with a projected grossed-up dividend yield of 7.1%.

However, Morgan Stanley only rates ANZ shares as a hold, with a target price of $28 over the next 12 months. On the broker’s numbers, ANZ shares are trading at close to 15x FY21’s estimated earnings.

The post Up 27% this year, is the ANZ (ASX:ANZ) share price still a buy? appeared first on The Motley Fool Australia.

More reading

• ANZ (ASX:ANZ) shares hit 52-week high, trade deal to create ‘new opportunities’
• A Super-bad idea
• Is Westpac’s (ASX:WBC) life insurance approaching its sell-by date?
• ASX 200 Weekly Wrap: ASX edges even higher, led by tech rebound
• ANZ (ASX:ANZ) expects RBA to act on low-interest rates earlier than planned

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 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) isn’t having a great day this Thursday so far. At the time of writing, the ASX 200 is down 0.27% to 7,366 points after falling as low as 7,341 points earlier this morning.

So let’s take a look at the ASX 200 shares that are being the most actively traded today:

The 3 most active ASX 200 shares today

South32 Ltd (ASX :S32)

Fresh from making the most traded shares on Tuesday, diversified ASX 200 miner South32 is once again finding itself being heavily traded today as well. At the time of writing, a hefty 14.46 million shares have swapped hands today. This follows a not-insignificant fall in the South32 share price – it’s down 1.4% today to $2.82 a share.

As we noted earlier in the week, South32 has been buying back its own shares quite consistently in recent times. So there is a chance that some of these 14.46 million shares were picked up by the company itself today.

Telstra Corporation Ltd (ASX: TLS)

Telstra is another ASX blue-chip share that is bouncing around the ASX 200 boards today. It actually makes this list for the fourth trading day in a row. In fact, a substantial 16.94 million Telstra shares have changed hands this Thursday. That may be the result of the Telstra share price retreating somewhat away from its recent new 52-week high during intra-day trading.

Telstra is currently down 0.98% to $3.54 after hitting $3.61 for the first time in over a year last week. There is no other major news or announcements out of Telstra as of this afternoon.

Whitehaven Coal Ltd (ASX: WHC)

Whitehaven Coal is easily the ASX 200’s most active share today, with 19.91 million shares swapping owners so far. We can probably point to the coal miner’s substantial 11.18% loss today to $1.81 a share as the catalyst behind this trading activity.

As my Fool colleague Brooke covered earlier this morning, Whitehaven has seemingly disappointed investors with the production guidance it released this morning before market open. Whitehaven now expects its Narrabri mine to produce 4.1 million tonnes of coal in FY21. That’s down from the previously flagged 6-6.7 million tonnes. Evidently, investors were not too impressed.

The post Here are the 3 most active ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• ASX share market fears ease as RBA’s inflation target proves difficult to hit
• Why Coles, Creso Pharma, Ramelius, & Whitehaven Coal are tumbling lower
• Did the US Federal Reserve just ring the inflation warning bell?
• ASX 200 down 0.3%: Coles and Challenger updates, gold miners sink
• Whitehaven (ASX:WHC) share price slides 10% on guidance downgrade

Motley Fool contributor Sebastian Bowen owns shares of Telstra Corporation Limited. 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 Telstra Corporation 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 Nuix Ltd (ASX: NXL) share price has been a strong performer on Thursday.

In afternoon trade, the investigative analytics and intelligence software provider’s shares are up 7% to $2.80.

Despite this strong gain, the Nuix share price is still down a disappointing 67% since the start of the year.

Why is the Nuix share price charging higher today?

Investors have been buying the company’s shares after a leading broker responded positively to news that its Chief Executive Officer (CEO) and Chief Financial Officer (CFO) are leaving.

On Tuesday Nuix advised that CEO Rod Vawdrey intends to retire but will remain in the role while an international search is conducted for a replacement to lead the company on the next phase of its journey. It also advised that the company’s CFO, Stephen Doyle, has had his employment terminated by mutual agreement with effect from 30 June.

This follows a series of guidance downgrades by Nuix since its IPO late last year, which has led to its shares crashing notably lower than their listing price.

What did the broker say?

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $6.40 price target on the company’s shares.

Based on the latest Nuix share price, this price target implies potential upside of almost 130% over the next 12 months.

While Morgan Stanley acknowledges that such an overhaul in the C-suite is unusual so soon after an IPO and carries risks, it believes it is a necessary and constructive step towards rebuilding investor confidence in the company.

Outside this, the broker is fan of Nuix due to its long term growth potential. It believes that the global forensic and investigative software market is a structural growth story and Nuix has a strong position within it.

The post Why the Nuix (ASX:NXL) share price is racing 7% higher today appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy now
• Nuix (ASX:NXL) share price wobble after company upheaval
• ASX 200 rises, Nuix jumps, REA buys stake of Simpology
• Nuix (ASX:NXL) share price charges higher after announcing CEO and CFO exits
• BetMakers and Zip were among the most traded ASX shares last week

James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia has recommended Nuix Pty 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 S&P/ASX 200 Index (ASX: XJO) has quickly bounced back as investors buy up ASX shares following a speech from the RBA Governor this morning.

Philip Lowe discussed the economy’s transition from recovery to expansion phase at the Australian Farm Institute Conference in Toowoomba.

While there was plenty of information, the market had its ears on the governor’s commentary around inflation.

Stubborn inflation

In his speech, Lowe discussed what the future may look like as the Australian economy takes its next steps forward.

Although employment is now 1% above pre-COVID levels and GDP growth has rebounded strongly, the governor insisted that it’s important not to lose sight of the challenges being faced.

While unemployment has retreated, wage growth continues to remain elusive. Lowe noted that the RBA had not seen any serious movement in wages or inflation despite improvements in economic data.

Reportedly, businesses have felt as though increasing prices is not an option due to the competitive environment. As a result, the focus had instead shifted towards cost-cutting to achieve increased profits.

This mindset can be helpful in making businesses more efficient, but it also has the effect of making wages and prices less responsive to economic conditions.

Investors are breathing a sigh of relief following the RBA’s comments. In contrast, the US Federal Reserve last night found that inflation had come in ahead of expectations in the last few months. The remarks sending warning signals across equity markets.

Fuel for ASX shares

Today’s speech continues the RBA’s position on maintaining a low-rate environment until early 2024, at the earliest. This gives added confidence in equities, as borrowing for leveraged investments remain low and the return on cash remains unattractive.

ASX-listed tech shares have particularly gained a boost out of today’s dovish comments. At the time of writing, the information technology sector is 1.08% higher.

The post ASX share market fears ease as RBA’s inflation target proves difficult to hit appeared first on The Motley Fool Australia.

More reading

• Did the US Federal Reserve just ring the inflation warning bell?
• ASX 200 down 0.3%: Coles and Challenger updates, gold miners sink
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 rises again, Avita jumps, Shaver Shop sinks
• Here are 3 of the ASX 200’s most traded shares today

Motley Fool contributor Mitchell Lawler 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 Coles Group Ltd (ASX: COL) share price has been among the worst performers on the S&P/ASX 200 Index (ASX: XJO) on Thursday.

The supermarket operator’s shares were down as much as 5% to $16.14 at one stage today.

The Coles share price has recovered slightly since then but remains down 4% to $16.38 at the time of writing.

Why is the Coles share price sinking today?

The Coles share price has come under pressure on Thursday following the release of its strategy day update this morning.

While there were a number of positives in the update, such as its progress with cost cutting and sales density, investors appear to have reacted negatively to comments relating to its capital expenditure and depreciation.

Coles revealed that it is expecting its capital expenditure to increase to $1.4 billion in FY 2021, whereas its depreciation is forecast to rise to ~$1.7 billion.

What was the reaction?

A note out of Goldman Sachs reveals that its analysts have been running the ruler over today’s update.

The broker commented: “Supply chain and online upgrades have the potential to materially impact long term profitability for COL and materially change the competitive landscape. However, the medium-term costs from a capex, overlapping costs and D&A perspective are higher than previously expected, potentially taking some of the shine off the significant structural progress being made by COL.”

Is this a buying opportunity?

While Goldman Sachs may yet make revisions to its recommendation, for now the broker rates the Coles share price as a buy.

It has a buy rating and $20.50 price target on the company’s shares. This implies potential upside of 25% over the next 12 months excluding dividends. And if you include dividends, this potential return stretches to a sizeable 29% over the same period.

The post Is the weakness in the Coles (ASX:COL) share price a buying opportunity? appeared first on The Motley Fool Australia.

More reading

• Why Coles, Creso Pharma, Ramelius, & Whitehaven Coal are tumbling lower
• ASX 200 down 0.3%: Coles and Challenger updates, gold miners sink
• Coles (ASX:COL) share price on watch following strategy update
• 5 things to watch on the ASX 200 on Thursday
• Top brokers name 3 ASX shares to buy today

James Mickleboro does not own any shares 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 COLESGROUP DEF SET. 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 Westpac Banking Corp (ASX: WBC) share price is having another strong day today. At the time of writing, Westpac shares are up a healthy 1.85% to $27.04 a share. Earlier in the trading day, the ASX bank was doing even better, reaching a new 52-week high of $27.12 a share. Today’s gains put Westpac up 6.75% over the past month, 37.75% year to date, and a rewarding 49% over the past 12 months.

In saying that, these gains aren’t enough to make up for Westpac’s longer-term performance. Over the past 5 years, the banking giant is still down 5.7%, and it still remains around 30% off of its all-time high of nearly $40 a share that we saw way back in 2015.

Still, it has still been an unquestionably strong year for Westpac shareholders. As it has been for most of the ASX banks. Commonwealth Bank of Australia (ASX: CBA) has fared even better than Westpac. It’s also up today (1.12%) and actually hit yet another all-time (not 52-week) high of $106.57 just after midday today. CBA shares are now up 52.3% over the past year.

But back to Westpac. Well, as an ASX bank, Westpac’s fortunes are closely tied to the broader Australian economy (more so than most ASX shares). As such, it’s possible that Westpac shares are feeling the love from the rebounding Australian economy.

The ‘economic recovery’ narrative was bolstered further just this morning, with the release of the ABS’s unemployment data for May this morning. The ABS data showed Australian unemployment falling to below pre-COVID levels, an arguable sign that the economy is going from strength to strength. This could possibly be feeding into the Westpac share price’s new highs today.

Could Westpac shares be a buy today?

So with Westpac at a new 52-week high today, could this ASX bank be a buy? Well, one broker who thinks so is the investment bank, Goldman Sachs. Goldman has rated Westpac as a buy, with a 12-month price target of $29.03. Goldman reckons Westpac shares are still cheap and thinks the bank will be able to grow its earnings nicely over the next few years thanks to its large capital base.

On the current Westpac share price, the ASX bank has a market capitalisation of $99.24 billion, a price-to-earnings (P/E) ratio of 23.15 and a trailing dividend yield of 3.29%.

The post Westpac (ASX:WBC) just made a new high! Could it still be a buy today? appeared first on The Motley Fool Australia.

More reading

• Commonwealth Bank (ASX:CBA) share price hits new record despite money laundering scandal
• Is Westpac’s (ASX:WBC) life insurance approaching its sell-by date?
• ASX 200 Weekly Wrap: ASX edges even higher, led by tech rebound
• Why Westpac (ASX:WBC) and this ASX 200 share are smashing the market in 2021
• 2 blue chip ASX shares that could be buys in June

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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has run out of steam and is trading lower. At the time of writing, the benchmark index is down 0.25% to 7,368.8 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are tumbling lower:

Coles Group Ltd (ASX: COL)

The Coles share price is down 4% to $16.39. This follows the release of its strategy day update this morning. Investors may have been disappointed to hear that the supermarket operator is expecting its capital expenditure and depreciation to increase in FY 2022. Coles is forecasting capital expenditure of $1.4 billion and depreciation of ~$1.7 billion in FY 2022. This is partly due to its investment in its distribution centres.

Creso Pharma Ltd (ASX: CPH)

The Creso Pharma share price has crashed 12.5% to 15.7 cents after announcing a merger with Canadian cannabis company Red Light Holland. Management notes that this will create a leading global psychedelics and cannabinoid company. Under the terms of the agreement, shareholders will receive 0.395 of a Red Light Holland share for each fully paid ordinary share of Creso Pharma. This currently equates to just 16 cents per share, compared to its last close price of 18 cents.

Ramelius Resources Limited (ASX: RMS)

The Ramelius share price has fallen 4% to $1.72. This gold miner’s shares have come under pressure despite announcing that it has commenced ore mining at its Tampia gold mine. A pullback in the gold price overnight has offset this news and is leading to most gold miners sinking lower today.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price has tumbled 11% to $1.81 after downgrading its guidance. The coal miner revealed that it now expects FY 2021 production to be 20.4Mt. This compares to its previous guidance of 20.6Mt to 21.4Mt. One positive is that its cost guidance remains unchanged for FY 2021.

The post Why Coles, Creso Pharma, Ramelius, & Whitehaven Coal are tumbling lower appeared first on The Motley Fool Australia.

More reading

• ASX gold shares are sliding today
• ASX 200 down 0.3%: Coles and Challenger updates, gold miners sink
• Whitehaven (ASX:WHC) share price slides 10% on guidance downgrade
• Creso Pharma (ASX:CPH) share price sinks on Red Light Holland merger plans
• Ramelius (ASX:RMS) share price slides 6% despite project milestone

James Mickleboro does not own any shares 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 COLESGROUP DEF SET. 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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There are a number of ASX shares that could be good ideas to look at right now.

Businesses and investments that are trading at an attractive valuation might be worthwhile considering.

These two ASX shares could be options:

Adairs Ltd (ASX: ADH)

Adairs is one of leading retailers in Australia. The ASX share sells a variety of different products including bedding, bath, homewares and furniture.

According to Commsec, it’s currently trading at 11x FY21’s estimated earnings.

It’s planning to grow revenue, profit and efficiency further with some initiatives.

The ASX share points to its proven and resilient business model as a key driver with strong brands, a large and loyal customer base and a vertical supply chain. That model leads to higher margins and gives it more control. It now has more than 900,000 ‘Linen Lover’ club members that visit more often and spend more on each visit compared to non-members.

Another future profit driver is the digital transformation that the business is going through, as well as its omni-channel leadership. In the first half of FY21, Adairs online sales was up 95.2% and Mocka sales were up 44.4%, with total online sales now at 37% of total online sales.

Mocka is a division that management believe has a lot of potential. Mocka’s last 12 months of sales amounts to $21.9 million from New Zealand, with a population of 5 million. That compared to $31.7 million of sales in Australia. Adairs said if Mocka Australia achieves the same sales-to-population parity with New Zealand, that could mean sales of over $110 million. Mocka’s brand awareness is growing quickly, it just expanded its Australian warehouse facilities to support growth. There are also product category expansion opportunities.

With its stores, Adairs said that all stores are profitable, and that larger stores are more profitable with higher margins, so there are significant upsizing opportunities within the current portfolio. However, there are still profitable new store opportunities remaining.

Finally, the construction of its DHL-operated national distribution centre in Melbourne is on track to be operational in the first quarter of FY22. This is expected to deliver annual savings of $3.5 million per annum for the ASX share once fully operational. It will also improve stock flow and online order fulfilment. Management say this will support business growth well into the future.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

This is an exchange-traded fund (ETF) that is offered by VanEck. The concept of the ETF is that Morningstar analysts give over 1,000 US businesses a moat rating, which is how long that business’ competitive position is expected to endure.

Companies that have an economic moat that is expected to endure for many years are given a ‘wide moat’ rating.

Then, of those businesses with a wide moat rating, the Morningstar analysts picks businesses that are attractively lower than the estimated fair value.

There are approximately 50 holdings in the portfolio. The top 10 are currently Biogen, Wells Fargo, Cheniere Energy, Alphabet, Northrop Grumman, Philip Morris, Blackbaud, Raytheon Technologies, General Dynamics and Berkshire Hathaway.

Those holdings are fairly evenly spread across different industries. There are currently five sectors with a weighting of more than 10%: healthcare (20.3%), information technology (16.6%), industrials (15.4%), financials (13.3%) and consumer staples (11.1%).

Past performance is no guarantee of future performance. Over the last five years, the ETF has delivered an average return per annum of 17.1%, which is just over 2% per annum better than the S&P 500 over that same time period.

The ASX share comes with an annual management fee of 0.49%.

The post Got money to invest? Here are 2 ASX shares that could be buys appeared first on The Motley Fool Australia.

More reading

• Diversify your portfolio with these quality ETFs
• Got cash to invest for dividends? Here are 2 ASX shares that could be buys
• 3 reasons why the VanEck Vectors Morningstar Wide Moat ETF (ASX:MOAT) could be a quality investment
• 2 excellent ETFs for ASX investors in June
• Got money to invest for dividends? Here are 2 ASX shares that could be buys

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 recommended ADAIRS FPO. The Motley Fool Australia has recommended ADAIRS FPO and VanEck Vectors Morningstar Wide Moat ETF. 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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2021 has been a challenging year for ASX gold shares with prices in the precious metal struggling to gain traction.

In contrast to the S&P/ASX 200 Index (ASX: XJO) sitting near record highs with a year-to-date return of about 10%, most ASX gold shares are now slipping into negative year-to-date territory.

The market on Thursday has delivered another sea of red for ASX gold shares. Let’s take a look.

Gold prices slide in June

Gold prices staged a strong rally between April and May, running to a three-month high of about US$1,908/oz.

But they have gone backwards in June, down about 5% from ~US$1,900 to ~US$1,822 at the time of writing.

It’s possible today’s selloff was triggered by the overnight slump in gold prices after commentary from the US Federal Reserve regarding inflation expectations and interest rates.

Higher interest rates or benchmark yields typically works against gold prices. A higher interest rate environment could prompt a flow of funds from the yellow metal, which does not bear any yield, to bonds.

What’s happening with these ASX gold shares today?

Newcrest Mining Ltd (ASX: NCM), the largest ASX-listed gold share, is currently down 2.17% today to $26.85, dragging its year-to-date performance down -0.61%.

Evolution Mining Ltd (ASX: EVN) is another heavyweight among ASX gold shares. Its shares have slumped 3.85% at the time of writing to $4.74. Its shares are down 10% year-to-date, currently hovering around 15-month lows.

The Northern Star Resources Ltd (ASX: NST) share price is the worst performing large-cap ASX gold share today, sliding 6.11% to $10.30. The company’s shares have fallen 22.4% year-to-date.

Mid-tier producers including Perseus Mining Ltd (ASX: PRU), Regis Resources Ltd (ASX: RRL) and St Barbara Ltd (ASX: SBM) have also slipped between 1.8% to 3.2%.

Even a positive project milestone announcement out of Ramelius Resources Ltd (ASX: RMS) couldn’t buoy its share price, with the company’s shares sliding 3.5% to $1.73.

The post ASX gold shares are sliding today appeared first on The Motley Fool Australia.

More reading

• ASX 200 down 0.3%: Coles and Challenger updates, gold miners sink
• Ramelius (ASX:RMS) share price slides 6% despite project milestone
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 Weekly Wrap: ASX edges even higher, led by tech rebound

Kerry Sun 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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