87.19 F
July 19, 2024
PI Global Investments

Australian gold miners fall as CPI data pulls bullion from record highs By Investing.com

© Reuters.

Investing.com– Shares of major Australian gold mining stocks fell on Wednesday, tracking a fall in the prices of the yellow metal, which retreated from record highs tracking hot U.S. inflation data.

Northern Star Resources Ltd (ASX:), the biggest listed gold miner in the country, fell 1.4%, while Sydney shares (ASX:) of U.S. gold miner Newmont Goldcorp Corp (NYSE:) shed 2.6%. Evolution Mining Ltd (ASX:) lost 2.1%, while Genesis Minerals Ltd (ASX:) fell 2.4%.

Gold miners lagged the broader Australian stock market, with the rising 0.3%. 

Losses in gold miners came as prices of the yellow metal retreated sharply from record highs this week. slid about 2% from a record high of 2,195.20 an ounce, while fell over 2% from a record high of 2,203.0 an ounce. 

Gold prices were hit chiefly by fears of higher-for-longer U.S. interest rates, after inflation read higher than expected for February. and Treasury yields rose after Tuesday’s data, pressuring bullion prices. 

Higher rates present a higher opportunity cost for buying into bullion, which diminishes the yellow metal’s appeal. Weaker gold prices in turn present smaller margins for gold miners, who usually operate on very tight margins, given the high capital cost in mining gold. 

Still, gold mining stocks were sitting on strong gains over the past  two weeks, tracking a melt-up in bullion prices. While the Federal Reserve may delay interest rate cuts in the near-term, it is still expected to eventually bring down rates in 2024. 

Source link

Related posts

Gold Prices Forecast: More Gains Ahead Amid Fed Rate Cut Speculation?


Gold price climbs Rs 10 to Rs 73,100, silver rises Rs 100 to Rs 93,100 | Commodities


Rolls Royces, a gold coffin, and incredible flower displays as hundreds say farewell to man known as ‘Big Daddy’


Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.