Here's why Australia's gold miners are getting smashed again

Newcrest Mining Limited (ASX:NCM) is nursing another decline today after the gold miners sunk lower again. Here's why…

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Unfortunately it hasn't been a good week for the investors of Australia's leading gold producers. Following a steep decline at the start of the week, the spot gold price continued to sink lower in overnight trading.

Strong economic data out of the United States this week has bolstered the case for the Federal Reserve to raise interest rates before the end of the year.

This caused the spot gold price to drop to a four-month low of US$1,250 an ounce. Although it has since recovered slightly to US$1,258 an ounce, it is still almost US$100 an ounce lower than where it was just a month ago.

As you might expect the shares of Australian gold producers have dropped today in response to these declines. At the time of writing the S&P/ASX All Ords Gold (Index: ^AXGD) (ASX: XGD) is lower by almost 3%, with the following shares contributing strongly to these declines.

Company Share Price Market Cap Change
Newcrest Mining Limited (ASX: NCM) $20.33 $15.5Bn -2.9%
Northern Star Resources Ltd (ASX: NST) $3.86 $2.3Bn -1.1%
Regis Resources Limited (ASX: RRL) $3.34 $1.7Bn -3.3%
Resolute Mining Limited (ASX: RSG) $1.64 $1.2Bn -4.6%
Saracen Mineral Holdings Limited (ASX: SAR) $1.18 $950M -2.9%
St Barbara Ltd (ASX: SBM) $2.71 $1.3Bn -2.2%
Troy Resources Ltd (ASX: TRY) 36 cents $163M -2.7%

Unfortunately I expect the gold price could come under more pressure over the next couple of months as the Fed meetings draw closer.

This could potential drag the gold price and the miners down even lower. For this reason I feel that now might be a great time to take profits and look elsewhere in the market.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »