Why ASX 200 gold shares are sinking on Friday

These Aussie gold miners are seeing their values slump on Friday

| More on:

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

The S&P/ASX 200 Index (ASX: XJO) is falling lower towards the end of the week and ASX 200 gold shares are among the losers. Shares in some of Australia's largest gold miners are sharply down amid falling commodity prices.

plummeting gold share price

Image source: Getty Images

Why ASX 200 gold shares are sinking on Friday

Gold prices fell to a one-month low overnight, falling below US$1,800 per ounce. It came as demand for the US dollar rebounds with investors expecting a US Federal Reserve tapering program and rising US Treasuries yields.

That has been reflected in ASX 200 gold shares on Friday. The Newcrest Mining Ltd (ASX: NCM) share price has fallen 2.9% at the time of writing to $23.83 per share. Shares in the Aussie gold and copper miner are now trading 3.3% above their 52-week low of $23.08 per share.

Newcrest is far from the only gold producer under pressure in the final trading session of the week. The Northern Star Resources Ltd (ASX: NST) share price has slumped 3.9% to $9.17 per share on Friday. Northern Star shares are now down 31.1% since the start of the year.

Evolution Mining Ltd (ASX: EVN) hasn't been able to escape the losses either. The ASX 200 gold share is down 3.1% at the time of writing to $3.80 per share. That has seen Evolution's market capitalisation edge below $7 billion on Friday afternoon.

On the smaller end, Chalice Mining Ltd (ASX: CHN) shares have been hit hard. The Chalice share price is down 4.6% on Friday afternoon but remains up an impressive 377% in the past 12 months.

Foolish takeaway

A number of ASX 200 gold shares are under pressure on Friday. It looks as though tumbling gold prices amid stronger US dollar demand has hurt the commodity-based shares heading into the weekend.

Motley Fool contributor Ken Hall 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.

More on Gold

Female miner smiling in front of a mining vehicle.
Gold

Why has the Newcrest share price leapt 7% in under a week?

The Newcrest share price looks to be benefiting from tailwinds blowing in on three fronts.

Read more »

Gold bars on top of gold coins.
Gold

Why is everyone suddenly talking about ASX 200 gold stocks again?

Gold is all the rage on the ASX 200 this week.

Read more »

a man wearing a gold shirt smiles widely as he is engulfed in a shower of gold confetti falling from the sky. representing a new gold discovery by ASX mining share OzAurum Resources
Gold

Why are ASX 200 gold stocks like Northern Star having such a stellar run today?

Is a US bank responsible for gold's stellar performance today?

Read more »

a woman wearing a sparkly strapless dress leans on a neat stack of six gold bars as she smiles and looks to the side as though she is very happy and protective of her stash. She also has gold fingernails and gold glitter pieces affixed to her cheeks.
Gold

2 ASX gold ETFs hitting record highs today

What's driving these ETFs to new highs today?

Read more »

A woman wearing a gold top and carrying a gold bar gives the thumbs down signal as she leans against a wall with a sombre look on her face as the Kingsgate share price goes lower
Gold

Guess which ASX gold share just crashed 49%

This gold share certainly isn't glittering on Thursday.

Read more »

gold, gold miner, gold discovery, gold nugget, gold price,
Share Gainers

Guess which ASX mining share just leapt 62% on a 'bonanza gold' find

The ASX mining share entered a trading halt on Friday pending today’s announcement on its gold exploration campaign in Western…

Read more »

Female miner smiling at a mine site.
Resources Shares

Why are ASX 200 mining shares leading the market today?

The top 5 ASX 200 shares today are all from the mining sector. What's going on?

Read more »

A woman holds a gold bullion in each hand, arms out showing her muscles with an incredulous look on her face.
Earnings Results

2 ASX gold stocks on the move following results updates

One went up, the other went down.

Read more »