Why are ASX 200 gold shares having such a stellar run today?

What's impacting these gold shares today?

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Key points
  • Gold explorers Newcrest, Evolution and Northern Star are all soaring today 
  • The Evolution Mining share price is surging by 7% 
  • Gold prices rose overnight amid the US dollar weakening against the Japanese Yen 

ASX 200 gold shares are having a top run on the market today amid higher gold prices.

Gold explorers in the green include Evolution Mining Ltd (ASX: EVN), Newcrest Mining Ltd (ASX: NCM) and Northern Star Resources Ltd (ASX: NST)

Let's take a look at what is weighing on ASX 200 gold shares today in more detail.

An older female ASX investor holds a gangster-style fist pump pose showing off gold rings with dollar signs on them.

Image source: Getty Images

Gold prices lift

Evolution Mining shares are rising 7% today. Meanwhile, Newcrest Mining shares are lifting 5.71% and Northern Star Resources shares are up 3.94%. For perspective, the S&P/ASX 200 Index (ASX: XJO) is climbing 1.58% today.

Gold shares are lifting after the spot gold price rose by 1.6% overnight. Gold is currently fetching US1,827.40 an ounce at last look, according to CNBC.

A weaker US dollar provided the gold price with a boost, as my Foolish colleague James reported this morning. The Bank of Japan shifted its yield curve, causing the Japanese yen to surge to a four-month peak against the dollar, Reuters reported.

Commenting on the impact of the US dollar on the gold price, Exinity chief market analyst Han Tan, quoted on CNBC, said "spot gold is being given another chance to shine thanks to the dollar's pullback". He added:

The next leg down for the dollar should send spot gold onto a new cycle high past $1,824.50.

One analyst is tipping the gold price to continue to rise, despite the prospect of the US Federal Reserve raising interest rates next year. Circle Squared Alternative Investments chief executive officer Jeffrey Sica said in quotes cited by Reuters:

I see that it's going to be a dark shadow on the gold market, but I still think we're headed for an upside.

Earlier this week, Newcrest advised the market of leadership changes at the company. CEO and managing director Sandeep Biswas has retired. The company's chief financial officer Sherry Duhe has taken the reigns as interim CEO.

Share price snapshot

Newcrest Mining shares have fallen nearly 13% in the past year.

The Northern Star Resources share price has soared 17.7% in the last year.

Evolution shares have slid 25% in the last 52 weeks.

Motley Fool contributor Monica O'Shea 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.

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