ASX gold shares rally on another fresh record for the gold price

This corner of the market is dominating today.

A woman in a business suit holds a large gold bar in both hands with a gold arrow tracking upwards.

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 shaky, but improving Friday session for the S&P/ASX 200 Index (ASX: XJO) so far today. At the time of writing, the ASX 200 has recovered form an early sell-off to push 0.22 higher. But let's talk about what's going on with ASX gold shares.

Gold shares are having a phenomenal day so far. Take the market's largest miner, Newmont Corporation (ASX: NEM). It's currently enjoying a 1.22% lift to $76.58 a share.

Most ASX gold shares are doing even better than that, though. Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) are both up more than 3% at present.

West African Resources Ltd (ASX: WAF) and Spartan Resources Ltd (ASX: SPR) have clocked gains of 3.7% and 4.9%, respectively. But Ramelius Resources Ltd (ASX: RMS) is currently the best-performing stock on the entire ASX 200 Index, up a rosy 5.2% at $2.43 a share.

So, what's going on today that has resulted in these ASX gold shares smashing the market so convincingly?

Why are these ASX gold shares surging this Friday?

Well, we don't have to look too far to see what's going on. As we flagged this morning, the price of gold itself experienced a significant jump in value in overnight trading. At one point last night, one ounce of the precious metal cost US$3,059.55, a new record high for gold. Gold spot prices have since pushed even higher, hitting as much as US$3,075 an ounce on some exchanges.

With the precious metal pushing to such significant heights, it's no surprise to see the ASX's biggest gold stocks following suit today. Remember, gold miners tend to have relatively fixed costs. As such, an increase in the price of gold gives these miners' profitability a leveraged boost. That's why we usually see the prices of ASX gold shares rise by even more than the price of the metal itself during rallies. Of course, the opposite can also be true. But fortunately for gold bugs, it's the former scenario that's occurring right now.

Gold prices hit record high

Today's latest record high for gold continues a trend that has been playing out for more than a year. It was only at the start of last year that gold was going for under US$2,000 an ounce. Since then, the precious metal has rallied more than 50%, going off of today's new highs.

As gold is the classic 'safe haven' asset, we can probably put this rise down to renewed fears over global inflation, American sovereign debt, as well as continued global geopolitical tensions. This has evidently been a potent cocktail of tailwinds for gold prices. Let's see what the rest of 2025 holds in store for gold and the ASX gold shares that mine it.

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.
Share Gainers

2 ASX All Ords stocks that would already have more than doubled your money this year

These ASX All Ords stocks have gained 126% and 145% year to date. But how?

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

Guess which ASX 200 gold stock is sinking 7% on five-year guidance update

Let's see what this gold miner has announced this morning.

Read more »

A man analyses stockmarket graph on his computer.
Gold

Up 132% in a year, why is the Evolution Mining share price gaining again today?

Investors are piling into Evolution Mining shares on Friday. But why?

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Gold

ASX 300 gold stock crashes 8% on guidance update

This gold miner is having a tough session on Friday. But why?

Read more »

View of a mine site.
Gold

Up 70% in a year, why this fund manager is calling time on this soaring ASX 200 gold stock

A leading investment expert foresees headwinds for this surging ASX 200 gold miner.

Read more »

A man standing in a red rock mine is covered by a sheet of gold blowing in the wind.
Gold

Up 305% in a year, what's got investors so excited about this ASX gold share?

'First gold' is imminent...

Read more »

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

Why are ASX 200 gold stocks going gangbusters today?

Investors are piling into the ASX 200 gold miners today. But why?

Read more »

A man wearing glasses and a white t-shirt pumps his fists in the air looking excited and happy about the rising OBX share price
Gold

Guess which ASX stock is rocketing 75% on big news

Let's find out why this shares is starting the week with a bang.

Read more »