Own ASX gold shares? Here's why you're having a horrible day

If you own ASX gold shares, you won't be too happy right now.

Red arrow on gold bars going down.

Image source: Getty Images

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

It's looking like a pretty disappointing day for most ASX investors so far this Tuesday. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has kicked off today's trading on a negative note. The index is currently down a rather horrid 0.85%, pulling it back under 7,100 points. But let's talk about ASX gold shares.

If you own any ASX gold shares, I'm afraid you're fortunes are faring even worse so far this session. Gold stocks are getting smashed across the board, no other way about it.

Capricorn Metals Ltd (ASX: CMM) seems to be the worst-hit gold miner thus far. The Capricorn share price is presently down by a nasty 9.05% at $4.43 a share.

Resolute Mining Ltd (ASX: RSG) and St Barbara Ltd (ASX: SBM) are both down more than 6%.

Northern Star Resources Ltd (ASX: NST) has fallen 4.3%, and Perseus Mining Ltd (ASX: PRU) by 4.7%.

Gold Road Resources Ltd (ASX: GOR) is one of the luckier ones. But it has still given up 3.54% of its value.

And the ASX's largest gold share, Newmont Corporation (ASX: NEM), has slipped by 2.53%.

So long story short, it's a bad day to be invested in a certain yellow metal. So much so that gold is currently the worst-performing sector on the entire market. The All Ordinaries Gold Index (ASX: XGD) has cratered by a painful 3.2% at present.

But why? Why are ASX gold shares seemingly being singled out for this punishment by investors?

Why are ASX gold shares being thrown out today?

Well, it could be a combination of two things. Firstly, gold shares have actually had a fantastic time on the markets of late. While the All Ords Gold Index is down big today, the three weeks to yesterday saw it climb a whopping 16.1%.

Between the start of October and yesterday, these gains extended to almost 25%. This has been fuelled by an underlying rise in the price of gold itself.

Only a few days ago, gold hit an all-time record high of US$2,135.39 an ounce.

Thus, some investors might argue that gold shares are due for at least some sort of correction.

Secondly, gold prices did pull back substantially overnight. As my Fool colleague reported this morning, the spot gold price fell 2.15% in overnight trading down to US$2,045 an ounce. That's still high by historical standards, but clearly the sharp downward move was enough to take the collective wind out of the sails of ASX gold shares.

So it's probably for these reasons that ASX gold shares are having such a dire Tuesday. Even so, ASX gold investors arguably don't have too much to complain about, considering recent developments. Let's see where the precious metal and its miners head to next.

Motley Fool contributor Sebastian Bowen has positions in Newmont. 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.

More on Gold

Rising gold share price represented by a green arrow on piles of gold block.
Gold

Up 74% in a year, why is this ASX 200 gold share marching higher again on Thursday?

Investors are bidding up this surging ASX 200 gold stock again today. But why?

Read more »

A woman in a business suit sits at her desk with gold bars in each hand while she kisses one bar with her eyes closed. Her desk has another three gold bars stacked in front of her. symbolising the rising Northern Star share price
Gold

Is this $15bn ASX 200 gold stock a buy?

Let's see what Bell Potter is saying about this gold giant.

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Gold

Macquarie tips 32% upside for this ASX mining stock

Big returns could be on offer from this beaten down miner.

Read more »

ASX gold share price.
Gold

Could US earnings season move the gold price?

It could be a big few weeks for gold.

Read more »

Woman with gold nuggets on her hand.
Gold

Experts reveal 4 ASX gold shares with more than 30% upside potential in FY26

Think the ASX gold rush is over? Think again. Experts say these stocks have more share price growth ahead.

Read more »

Rising gold share price represented by a green arrow on piles of gold block.
Gold

Guess which ASX All Ords gold stock is marching higher on some 'very positive news'

The ASX All Ords gold stock has been actively drilling in Papua New Guinea.

Read more »

Miner looking at a tablet.
Gold

Northern Star share price drops 29% from its 2025 peak. What next?

It's been a rollercoaster ride for the gold producer's share price in 2025.

Read more »

Red arrow on gold bars going down.
Gold

Why Evolution Mining, Newmont shares are tumbling today

The ASX 200 Index is also in the red.

Read more »