Closing Bell: Investors snatch up gold as oil plunges and markets return to Covid-19 patterns

• ASX falls 0.82pc, led down by energy and healthcare stocks
• Gold rises to all-time high at US$3,215 per ounce
• Oil falls to levels not seen since April 2020, at height of Covid-19 pandemic

Despite pulling back on Tuesday, gold prices have hit an all-time high once again this year, jumping to US$3,215 per ounce today.

The safe haven commodity has been on a strong upward trend since the end of 2023 when central banks drastically increased their gold buying, accounting for 20% of global demand in 2024. That’s about double the gold uptake compared to 2021-2023.

It’s not all good news, though. Gold’s dominance comes in response to increasing anxiety about the stability of global financial markets, which have been pummelled by the ongoing US-China trade war.

The story was no different for the ASX today, which shed 0.82%. The healthcare sector was one of the main culprits, slipping 2.68%, but energy stocks took their own toll, falling 1.81% overall.

That’s about the least surprising market movement to occur this year, as energy stocks are simply suffering from the worst oil price slump since the Covid-19 lockdowns of April 2020.

Overnight Brent Crude fell 3.3% to US$63.33 a barrel and US Nymex 3.7% to US$60.07 a barrel.

For Aussie stocks, that’s translated to a 2.59% drop for Woodside Energy (ASX:WDS), 1.44% for Santos (ASX:STO) and 3.74% for Ampol (ASX:ALD). While modest, Yancoal Australia (ASX:YAL) actually managed to stay in the green, lifting 0.62% to buck the market trend.

Origin Energy (ASX:ORG) also unwound progress from yesterday, falling 1.58%. AGL Energy (ASX:AGL) took a bigger hit, shedding 4.80%.

Despite the energy stock gloom, it was a good day for several resources stocks.

Evolution Mining (ASX:EVN) jumped 6.86%, De Grey Mining (ASX:DEG) 5.93%, Newmont (ASX:NEM) 4.07% and Northern Star Resources (ASX:NST) 4.73%.

All four are – shocking no one – gold stocks, benefiting from a powerful 22% surge in the gold price since the end of last year.

Here’s how the sectors wound up today… Well played, Discretionary. Everyone else… please see me after class.

ASX SMALL CAP LEADERS

Today’s best performing small cap stocks:

ASX SMALL CAP LAGGARDS

Today’s best performing small cap stocks:

IN CASE YOU MISSED IT

Targeting gold, nickel and copper, Miramar Resources (ASX:M2R) has secured $1.8 million in a capital raise, as well as just over $150,000 from drilling co-funded by an exploration incentive scheme grant.

A further $180,000 is available from the grant – together with the funding from the capital raise, Miramar intends to resume drilling at the Gidji joint venture gold project and continue exploration for copper and nickel at the Bangemall project.

With gold once again reaching new heights at more than US$3,200 today, Mithril Silver and Gold (ASX:MTH) has unearthed multiple high-grade gold and silver results in channel sampling at the Copalquin District project in Mexico, with results up to 2m 26.8 g/t gold and 1,004 g/t silver.

Also preparing to capitalise on record-high gold prices, Magnetic Resources (ASX:MAU) has achieved gold recoveries of 97.5% from a composite taken from a deeper section of the Lady Julie North 4 project’s underground resource. The company is targeting annual production of 150,000 ounces.

Speaking of lucrative commodities, VHM Limited (ASX:VHM) has secured a mining licence for the Goschen rare earths and minerals sands project in Victoria, clearing one of the last remaining obstacles to finalising financing and offtake agreements.

The project already holds an ore reserve of 210 million tonnes and a mineral resource of 892 million tonnes, at 3% total heavy minerals. VHM expects to make a final investment decision this year.

At Stockhead, we tell it like it is. While Miramar Resources, Mithril Silver and Gold, Magnetic Resources and VHM Limited are Stockhead advertisers, they did not sponsor this article. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.