Asian Gold Stocks Rebound on Bullion Price Recovery
Asian gold stocks have rebounded after bullion prices rose by over 2% on Thursday to recover from a near six-week low. The increase in gold prices came as oil prices continued their decline, easing inflation concerns and causing the dollar to weaken.
The Federal Reserve's decision to raise interest rates by 25 basis points to 3.75%-4% earlier this week had led to a sharp decline in gold prices. However, lower Treasury yields and a retreat in the dollar helped restore demand for the non-yielding metal.
Asian gold miners tracked the recovery in bullion, with Newcrest Mining and Northern Star Resources gaining 2.4% and 4.3%, respectively. Other notable gainers included Evolution Mining, which added 2.9%, and Saracen Mineral Holdings, which rose 2.5%. In contrast, Chinese miner Zijin Mining fell 1.2%, while Shandong Gold Group declined 2.6% and Jiangxi Copper dropped 3.3%.
The outlook for gold remains sensitive to the path of US monetary policy, with 16 of the Fed's 18 policymakers expecting at least one further increase in interest rates by the end of 2026.