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ASX 200 gold stocks are having a bumper weekend as the price of gold recovers from two-year lows earlier in the week.
Among the rising gold explorers are Newcrest Mining Ltd (ASX:NCM), Northern Star Resources Ltd. (ASX:NST) and Evolution Mining Ltd (ASX:EVN).
So why are ASX 200 gold stocks having such a good day?
Gold prices are recovering
Newcrest shares are up nearly 2.97%, Northern Star Resources shares are up 3.41% and Evolution Mining shares are 2.52% in the green. Other rising gold miners include St Barbara Ltd (ASX: SBM), up 5.4%, as well as Silver Lake Resources Limited (ASX:SLR) and Regis Resources Limited (ASX: RRL), both up 5% and 4.8% respectively.
The price of spot gold rose 0.15% to US$1,671 per ounce at the time of writing. CNBC the data shows. However, the price of gold recovered 2.5% from the more than two-year low of S$1,629.50 on Monday afternoon.
The price of gold fluctuated overnight as investors priced in a slight drop in the US dollar and possible US rate hikes. Commenting on the price of gold, OANDA senior analyst Edward Moya, quoted by the CNBC said:
A slightly weaker dollar today might provide some relief… but the key takeaway should always be what’s happening with yields, the short end of the curve is still up sharply.
You’re probably dealing with a gold market that’s still going to react to anything related to the dollar, anything related to Fed expectations.
Meanwhile, St Barbara confirmed yesterday that it was in talks with operators in the St Leonora area regarding ‘one or more potential business combinations’ to unlock ‘operating and development synergies in the area’ .