A tough day on the ASX has led these two gold mining shares to hit a multi-year low today.
The Newcrest Mining Ltd (ASX: NCM) share price dropped to multi-year low of $19.06 during early afternoon trade.
While slightly recovered, its shares are currently down 3.14% to $19.14.
On the other hand, the Evolution Mining Ltd (ASX: EVN) share price also hit a multi-year low of $2.31 during midday.
At the time of writing, its shares are down 4.90% to $2.33 apiece.
What's happened to both of these gold mining shares?
While no news has come out of either company today, it's apparent that a broader decline on the ASX is attributing to the fall.
The S&P/ASX 200 Resources (ASX: XJR) index is one of the worst performers on Monday, down 1.53% to 5,005.9 points.
A general weakness in commodity prices is dragging down gold and mining shares amid investors' uncertainty on the economic outlook.
United States inflation numbers for June are set to be released this Wednesday along with the domestic jobs data on Thursday.
Undoubtedly, the market will be closely looking at the readings that come out of both reports.
If these numbers are high like the previous month, it could lead the Federal Reserve to ramp up interest rates again.
In addition, investor risk appetite for gold has receded over the past week which has piled on selling pressure.
The spot price of gold has been on a downwards path to trade below the psychological US$1,800 barrier. Currently, the yellow metal is fetching for US$1,740 per ounce.
Traditionally, in times of uncertainty and volatility, gold is considered a safe haven for investors to park their money.
However, with higher interest rates from central banks to cool inflation, investors tend to shift their assets into government bonds.
Looking at the latest figures, the Australian government bond yields range from 2.58% to 3.69% depending on the length of time.
Foolish takeaway
Despite the recent falls of both company shares, a small exposure to gold can be beneficial for any investor portfolio.
Even in the current economic climate, holding established gold mining companies with a long-term horizon can reap strong rewards.
