Gold Miners on ASX Stand Out as Gold Prices Reach All-Time High

September 14, 2024 TruthUSA

The local share market has climbed for a second day, with goldminers in particular posting solid gains as the yellow metal changed hands at its highest-ever level.

The benchmark S&P/ASX200 index on Sep. 13 closed a whisker under 8,100, rising 24.2 points to a 10-day closing high of 8,099.9.

For the day it was up 0.3 percent and for the week it gained 1.1 percent, more than making up for last week’s losses.

The broader All Ordinaries on Sep. 13 rose 30.4 points, or 0.37 percent, to 8,323.5.

Moomoo analyst Jessica Amir said Europe’s central bank had bought good weekend vibes to markets, with the European Central Bank cutting interest rates overnight for the second time in 2024.

The move was expected, but still prompted a rebound in the euro, which rose against the U.S. dollar.

Gold rose to an all-time high of US$2,570 (AU$3,835) as ECB president Christine Lagarde spoke to reporters following the rate-cut decision, but Pepperstone head of research Chris Weston attributed gold’s surge to positioning and flow over the news on the day.

The yellow metal has enjoyed clear buying support during its recent consolidation phase, Weston said, and momentum accounts have been buying strength in the breakout.

The top four gainers in the ASX200 on Sep. 13 were all goldminers, with Perseus Mining, West African Resources, Capricorn Metals, and Red5 rising between 10.2 and 8.2 percent.

Evolution Mining grew 6.9 percent to a three-week high of $4.32 (US$2.90), Newmont added 3.9 percent to $78.70 (US$52.7), and Northern Star advanced 3.7 percent to an almost four-year high of $15.60 (US$10.45).

Elsewhere in the mining sector, BHP rose 2.0 percent to $39.60 (US$26.5), Rio Tinto added 0.9 percent to $111.42 (US$74.7), and Fortescue finished 5.0 percent higher at $17.50 (US$11.7).

Overall four of the ASX’s 11 sectors rose on Sep. 13 and five fell, with the bourse’s two consumer sectors finishing basically flat.

The mining sector was the biggest gainer, rising 2.3 percent, followed by real estate with a 1.1 percent gain.

Goodman Group climbed 2.4 percent to a six-week high of $35.38 (US$23.7).

All of the big four banks finished lower, with NAB dropping 1.2 percent to $38.28 (US$25.65), CBA dropping 0.9 percent to $141.65 (US$94.3), Westpac dipping 0.6 percent to $32.10 (US$21.5), and ANZ falling 0.5 percent to $31.15 (US$20.9).

The Australian dollar was buying 67.16 U.S. cents, from 66.88 U.S. cents at Sep. 12’s ASX close.

Looking forward, the Federal Reserve’s rate-setting committee will meet on Sep. 17 and 18.

Of 101 economists polled by Reuters, 92 expect the Federal Open Market Committee will cut interest rates by a quarter of a percentage point and nine are predicting a supersized cut of half a percentage point.

ON THE ASX:

* The benchmark S&P/ASX200 index finished Sep. 13 up 24.2 points, or 0.3 percent, at 8,099.9

* The All Ordinaries gained 30.4 points, or 0.37 percent, at 8,323.5.

CURRENCY SNAPSHOT:

One Australian dollar buys:

* 67.16 U.S. cents, from 66.88 U.S. cents at Sep. 12’s ASX close

* 94.66 Japanese yen, from 95.38 Japanese yen

* 60.64 euro cents, from 60.70 euro cents

* 51.12 British pence, from 51.24 pence

* 108.75 NZ cents, from 108.71 NZ cents

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