• Gold miners win the afternoon, up almost 3.5% today with a few real standouts
  • Chief among them was Bellevue Gold (ASX:BGL) which is now +825% over the past 5 years to a market cap of $1.87 billion
  • Also running: Evolution, Northern Star, De Grey, Ramelius, Perseus, Capricorn

 

The market woke up to new of Patriot Battery Metals’ (ASX:PMT) raking response to a short seller’s report and Rio Tinto’s (ASX:RIO) continued drift into Patriot’s James Bay lithium district in Quebec.

And while that meant lithium stocks were no doubt high on the minds of investors in the morning, it is gold miners who have won the afternoon.

It’s difficult to work out exactly why.

Gold prices are up 0.74% today to US$1926/oz, which is solid but not a breakout.

OANDA senior market analyst Ed Moya says a pending inflation report could put the nail in the coffin for market bulls hopeful of an end to rate hikes from Jerome Powell and his hawkish US Fed.

“Gold prices are hovering last week’s low as traders await a pivotal inflation report that seal the deal for a couple more Fed rate hikes,” he said.

“Bullion traders want to know if core CPI will show persistence and raise the odds that the Fed will not just go in July but more likely also in September.

“Even if we get a hot report, the Fed is locked into delivering a quarter-point rate rise. Following last month’s pause, the Fed seems positioned to remain aggressive with signaling tightening until we see a much more meaningful slowdown.

“Gold might end up trading rangebound this week, but the $1900 level should hold as long Wednesday’s inflation report is not scorching hot.”

Kind of as you were to be honest.

In the background, or perhaps foreground for those really bullish on the gold market, is the dovish tone being struck by some Fed members ahead of Wednesday’s inflation report.

 

Goldies let ‘er rip

But the cord has well and truly been pulled on the spluttering lawnmower that is the ASX gold sector, up almost 3.5% today with a few real standouts.

Chief among them was Bellevue Gold (ASX:BGL), which ripped over 15%.

Short covering may well have played a role, though other gold stocks were up and running today also.

Bellevue, which inked a deal last week to mill gold early via a toll treatment arrangement at Genesis Minerals’ (ASX:GMD) Gwalia Mill, hit a high in its current incarnation of $1.66.

That’s an 825% gain over the past five years to a market cap of $1.87 billion.

Full production at the 200,000ozpa Bellevue gold mine in the northen Goldfields is expected to begin in the December quarter.

Big dawgs Evolution Mining (ASX:EVN) and Northern Star Resources (ASX:NST) were also well supported, while De Grey (ASX:DEG), Ramelius (ASX:RMS) and Perseus (ASX:PRU) were also hot.

Mark Clark’s Capricorn Metals (ASX:CMM) lifted over 8% as it announced it had hit guidance at the Karlawinda gold mine in the Pilbara, producing over 120,000oz in FY23.

 

Goldies share prices today:

 

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