From the largest ASX-listed gold producers to mid-tier players, today’s a sea of red for ASX gold shares
The post ASX gold shares are sliding today appeared first on The Motley Fool Australia. –
2021 has been a challenging year for ASX gold shares with prices in the precious metal struggling to gain traction.
In contrast to the S&P/ASX 200 Index (ASX: XJO) sitting near record highs with a year-to-date return of about 10%, most ASX gold shares are now slipping into negative year-to-date territory.
The market on Thursday has delivered another sea of red for ASX gold shares. Let’s take a look.
Gold prices slide in June
Gold prices staged a strong rally between April and May, running to a three-month high of about US$1,908/oz.
But they have gone backwards in June, down about 5% from ~US$1,900 to ~US$1,822 at the time of writing.
It’s possible today’s selloff was triggered by the overnight slump in gold prices after commentary from the US Federal Reserve regarding inflation expectations and interest rates.
Higher interest rates or benchmark yields typically works against gold prices. A higher interest rate environment could prompt a flow of funds from the yellow metal, which does not bear any yield, to bonds.
What’s happening with these ASX gold shares today?
Newcrest Mining Ltd (ASX: NCM), the largest ASX-listed gold share, is currently down 2.17% today to $26.85, dragging its year-to-date performance down -0.61%.
Evolution Mining Ltd (ASX: EVN) is another heavyweight among ASX gold shares. Its shares have slumped 3.85% at the time of writing to $4.74. Its shares are down 10% year-to-date, currently hovering around 15-month lows.
The Northern Star Resources Ltd (ASX: NST) share price is the worst performing large-cap ASX gold share today, sliding 6.11% to $10.30. The company’s shares have fallen 22.4% year-to-date.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of May 24th 2021
Kerry Sun 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 Bruce Jackson.