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Gold shares tumble on vaccine news

Gold shares on the ASX are tumbling by more than 10% today after news regarding a successful COVID-19 vaccine broke in the United States.
The post Gold shares tumble on vaccine news appeared first on Motley Fool Australia. –

falling asx gold shares represented by businessman watching gold coins fall down

Some of the ASX’s biggest gold shares are tumbling lower in today’s trading after news of an imminent COVID-19 vaccine hit the market during United States trading hours. Biopharmaceutical company, Pfizer Inc (NYSE: PFE), announced overnight that its vaccine was 90% effective after undergoing Phase-3 testing. 

Gold bullion and gold mining companies have been on the rise this year after the pandemic struck – affirming the theory that gold is often sought by investors as a safe haven during market volatility. After the vaccine news overnight however, investors appear to have turned bullish, putting gold shares under pressure.

In US trading, the price of gold bullion itself had dropped almost US$100 to US$1,855 per ounce before settling to US$1,872 at the time of writing.

Here are three ASX gold shares that have been hit hard in today’s trading after the vaccine news was released.

3 ASX gold shares falling lower today

Northern Star Resources Ltd (ASX: NST)

Northern Star is a gold production company with a resource base located in the gold regions of Western Australia and Alaska. The Northern Star share price has been enjoying a good year, rising by over 50% prior to today’s decline. In October, the company provided an upbeat first-quarter FY21 update in which it announced an increase in its gold production by 40%.

At the time of writing, the Northern Star share price has declined by 11.55%  to $14.86, giving the company a market capitalisation of $12.3 billion.

Saracen Mineral Holdings Limited (ASX: SAR)

Saracen is a gold mining company having two operations in Western Australia – the Carosue Dam operation and the Thunderbox operation. The company has done particularly well during the pandemic with the Saracen share price rising by over 90% year to date (YTD) prior to today’s decline. The company announced a solid September quarter and was on track to achieve its key FY21 guidance targets for production. 

For its FY21 guidance, Saracen released a strong guidance of 600–640koz at an all in sustaining cost (AISC) of $1300–$1400 per ounce, based on prevailing gold prices at the time.

So far in today’s trade, the Saracen share price has fallen by 11.32% to $5.56, giving the company a market cap of $6.9 billion.

Evolution Mining Ltd (ASX: EVN)

Evolution is an ASX gold share that owns five gold and silver mines across Queensland and Western Australia.

Its share price has also gone through the roof this year, gaining around 70% YTD. According to its latest performance update released in October, Evolution Mining’s gold production came in at 170,021 ounces, a decrease of 22% on the prior quarter’s production. The company did not provide any FY21 guidance at the time.

At the time of writing, the Evolution share price has declined by 10.23%  to $5.79, giving the company a market cap of $10.7 billion.

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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Gold shares tumble on vaccine news appeared first on Motley Fool Australia.

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