Why is this ASX 200 gold share rocketing 7% on Thursday?

It's a good day to hold De Grey Mining shares.

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Key points
  • ASX 200 gold stocks are outperforming on Thursday after the gold price lifted once more, this time rising above US$1,850 an ounce
  • The De Grey share price is out in front of its peers, gaining around 7% to trade at $1.50 right now
  • Meanwhile, the ASX 200 materials sector is in the green while the All Ordinaries gold index has jumped nearly 3%

It's a good day to be invested in S&P/ASX 200 Index (ASX: XJO) gold shares. Many are spending the day in the green, including market favourite De Grey Mining Limited (ASX: DEG).

The De Grey share price is soaring 6.76% right now to trade at $1.50 despite the company's silence. That's 16.5% higher than it was at the end of 2022.

For comparison, the ASX 200 has spent most of today in the green. It's currently 0.05% higher than its previous close at 7,063 points.

So, what's going so right for the ASX 200 gold share and its peers today? Let's take a look.

A woman jumps for joy with a rocket drawn on the wall behind her.

Image source: Getty Images

ASX 200 gold shares outperform on Thursday

ASX 200 gold shares are among the market's leaders on Thursday, with investors' attention seemingly focused on one in particular.

More than $13 million worth of De Grey shares have traded hands so far on Thursday, with market participants bidding the stock nearly 7% higher.

And the company isn't alone in the green. Other ASX 200 gold shares are also outperforming. Some of the biggest gains include:

  • Shares in Silver Lake Resources Limited (ASX: SLR) have jumped 6.4% to $1.33
  • Chalice Mining Ltd (ASX: CHN) stock has lifted 5.7% to trade at $6.71
  • Newcrest Mining Ltd (ASX: NCM) shares have gained 3.1% to reach $21.71

They're helping to boost the S&P/ASX 200 Materials Index (ASX: XMJ) 0.4% higher at the time of writing.

Looking beyond the ASX 200, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) has soared 2.9% today.

Fortunately, there's a simple explanation behind the yellow metal's golden day.

Gold price lifts amid Federal Reserve minutes

The price of gold lifted above US$1,850 an ounce overnight as United States Federal Reserve minutes revealed interest rate hikes in the world's largest economy will likely slow this year.

Though, officials don't expect to lower rates in 2023 amid a continuing fight against inflation, as Reuters reports.

The gold price is now at its highest point since June, having gained around 1.6% since the end of 2022.

Motley Fool contributor Brooke Cooper 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 Scott Phillips.

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