ASX gold shares race higher after gold price hits record high

These shares are glittering like gold on Wednesday. Here's why.

a man wearing a gold shirt smiles widely as he is engulfed in a shower of gold confetti falling from the sky. representing a new gold discovery by ASX mining share OzAurum Resources

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 has been a great day to have ASX gold shares in your investment portfolio.

In morning trade, the gold sector is charging higher with solid gains being seen across the board.

Here's a summary of how some ASX gold miners are performing today:

  • The Bellevue Gold Ltd (ASX: BGL) share price is up 3%.
  • The Evolution Mining Ltd(ASX: EVN) share price is up 1.5%.
  • The Newmont Corporation(ASX: NEM) share price is up 2.5%.
  • The Northern Star Resources Ltd (ASX: NST) share price is up 3%.
  • The Ramelius Resources Ltd (ASX: RMS) share price is up 2.5%.
  • The Regis Resources Ltd (ASX: RRL) share price is up 3%.

This has driven the S&P/ASX All Ords Gold index 2.6% higher this morning.

Why are ASX gold shares rising?

Investors have been bidding gold stocks higher today after the price of the gold price stormed to a record high overnight.

According to CNBC, the spot gold price settled up 1.6% at an all-time closing high of US$2,467.8 an ounce. And during the session, the precious metal hit a new intraday record high of US$2,474.5 an ounce.

This was driven by optimism over the outlook for interest rates after June's softer US inflation data and some recently dovish comments from the US Federal Reserve Chair, Jerome Powell.

In fact, the share market is so confident that rates are going lower that they are now pricing in a 100% probability of a rate cut in September according to the CME FedWatch tool.

Is it too late to invest?

UBS analyst Joni Teves doesn't believe that it is too late to invest. Teves commented:

Interest to 'buy-the-dip' remained prevalent among investors amid strong sentiment towards gold, which is likely why the market was quick to rally on soft U.S. data prints and dovish Fed expectations. With the market sitting just above the psychological $2400 level, we think risks are skewed to the upside. We think positioning remains lean and there's space for investors to build gold exposure.

And as I mentioned here earlier this, Bell Potter believes that Capricorn Metals Ltd (ASX: CMM) shares are cheap at current levels.

It has a buy rating and $6.53 price target on the ASX gold share. It explained:

CMM's management team has a track record of capital efficient project funding, development, commissioning and operation. In our view, FY25 and FY26 should benefit from higher revenue and EPS increases by 32% and 6% respectively. CMM is a sector leading gold producer with a strong balance sheet, a management team with an excellent track record of delivery and clear organic growth options to lift group production to 270kozpa.

Motley Fool contributor James Mickleboro 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.

More on Gold

Calculator and gold bars on Australian dollars, symbolising dividends.
Gold

Bell Potter names the best ASX gold stocks to buy in FY26

These could be the best ways to gain exposure to gold in the new financial year.

Read more »

Woman with gold nuggets on her hand.
Gold

Which is Macquarie's top ASX gold sector stock pick?

When it comes to gold miners, this broker has one choice today.

Read more »

a man wearing a gold shirt smiles widely as he is engulfed in a shower of gold confetti falling from the sky. representing a new gold discovery by ASX mining share OzAurum Resources
Gold

The best ASX 200 gold stock to buy for big returns

Now could be a golden opportunity to buy this miner according to analysts.

Read more »

Miner looking at a tablet.
Gold

Greatland Resources shares commence trading on the ASX; Macquarie initiates coverage with outperform rating

Greatland Resources shares closed at $7.30 on their first day of trading.

Read more »

A woman holds a gold bar in one hand and puts her other hand to her forehead with an apprehensive and concerned expression on her face after watching the Ramelius share price fall today
Gold

Is the ASX gold rush over? Fundie says 'period of consolidation' has begun

The gold price and ASX gold shares have retreated since the commodity's record high on 22 April.

Read more »

A man rests his chin in his hands, pondering what is the answer?
Gold

Up 150% in 12 months: Can this ASX 200 gold stock keep rising?

Bell Potter has given its verdict on this high-flying stock.

Read more »

Two mining workers on a laptop at a mine site.
Gold

Up 60% this year, can Evolution Mining shares keep climbing?

What do the brokers say?

Read more »

Woman with gold nuggets on her hand.
Gold

Gold price edges higher on Fed's inflation warning

What did the Fed have to say?

Read more »