ASX gold shares rocket as price tops US$2,500

These gold stocks are smashing the markets today.

Three people with gold streamers celebrate good news.

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 been a volatile yet overall positive day for the S&P/ASX 200 Index (ASX: XJO) so far this Monday.

After opening in the red this morning, investors have since regained some optimism, with the ASX 200 now up a tentative 0.09% at around 7,978 points. But let's talk about what's going on with ASX gold shares.

Unlike most ASX 200 shares, gold stocks have been a roaring investing success this session.

Take the ASX 200's largest gold share, Newmont Corporation (ASX: NEM). Newmont shares are currently enjoying a 1.05% bounce up to $74.90 a share, which isn't too far from this miner's all-time ASX high of $76.23.

But Newmont isn't the only ASX gold share enjoying a big, market-beating boost this Monday. Northern Star Resources (ASX: NST) shares are doing even better, up 1.6% at $14.43 each.

Perseus Mining Ltd (ASX: PRU) is faring similarly, with Perseus shares rising a strong 2.6% to $2.57.

De Grey Mining Ltd (ASX: DEG) and Evolution Mining Ltd (ASX: EVN) are in a better ballpark again, up 2.2% and 2.8%, respectively.

But Gold Road Resources Ltd (ASX: GOR) and Emerald Resources N.L. (ASX: EMR) are taking out the top spots. Gold Road shares have vaulted 3.45% higher to $1.86, while Emerald stock is up a chunky 4.3% to $4.

Why are ASX gold shares exploding higher today?

We don't have to look too far for a catalyst for these decisive moves in the ASX gold space.

As my Fool colleague James reported this morning, gold itself has just reached a new record high, jumping 1.8% over the weekend to US$2,537.80. That's the first time the precious metal has traded at over US$2,500 an ounce.

According to CNBC, gold has pushed even higher since, with futures now pricing the metal as high as US$2,541.40 per ounce.

Reporting from Bloomberg points to expectations of steeper rate cuts over in the United States for these latest highs.

Bloomberg argued that "a disappointing reading on the US housing market reinforced expectations of fast and deeper cuts by the Fed" is behind this latest high. That's in addition to factors like higher geopolitical tensions and large central bank purchases of gold that have already boosted the precious metal's price this year.

Gold as an investment pays no interest or yield, so lower rates decrease the opportunity cost of holding gold against other yield-bearing assets like bonds and shares.

Some experts predict that gold will rise even further. The report quotes Bart Melek, global head of commodity strategy at TD Securities, as stating that "prices could rise further to [US]$2,700 in the coming quarters, as the macro/monetary and central bank ducks are aligning in a row."

So it's perhaps no wonder that ASX gold shares like Newmont, Northern Star, and Emerald Resources are having such a strong session this Monday. Let's see how the rest of the week treats this sector.

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

Female in elegant outfit smiling and gesturing victory with hands.
Gold

Guess which ASX 200 gold stock is jumping 7% on big news

This gold miner is getting a lot of attention on Thursday. But why?

Read more »

A woman blowing gold glitter out of her hands with a joyous smile on her face.
Gold

Why the roaring bull market for ASX 200 gold stocks may just be getting started

It may not be too late to tap into the tremendous gains being delivered by ASX gold stocks.

Read more »

A cool man smiles as he is draped in gold cloth and wearing gold glasses.
Gold

Macquarie tips 50% upside for this ASX gold mining stock

Let's see what the broker is saying about this gold miner.

Read more »

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

Why is everyone talking about Northern Star shares today?

ASX investors are piling into Northern Star shares today. But why?

Read more »

Man with rocket wings which have flames coming out of them.
Gold

Guess which ASX gold stock is jumping 10% on big news

This gold miner is having a day to remember on Monday.

Read more »

Two men in hard hats and high visibility jackets look together at a laptop screen at a mine site.
Gold

Macquarie predicts 15% upside for this ASX mining stock

Here's what the leading broker is tipping as a buy this week.

Read more »

Miner puts thumbs up in front of gold mine quarry
Gold

Why Macquarie expects this ASX 200 gold stock to surge 55%

Macquarie forecasts a big rebound ahead for this beaten down ASX 200 gold miner.

Read more »

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

Why Macquarie forecasts Northern Star shares are set to surge 55%

Macquarie believes Northern Star shares are well-placed to rocket higher.

Read more »