Gold miners listed on the Australian Securities Exchange (ASX), including Evolution Mining Ltd, Newmont Corporation, Northern Star Resources Ltd, and Regis Resources (OTC:RGRNF) Ltd, are facing a downturn in gold prices. The drop was instigated by the US Federal Reserve's hints at potential rate hikes, pushing the spot gold price below the US$2,000 per ounce mark to settle at US$1,993.5.
Despite this decline, Goldman Sachs (NYSE:GS) analysts predict a stable trajectory for gold prices around current levels until 2026 - US$1,970 in 2023 and approximately US$1,971 from 2024 onwards. This predicted stability is seen as a positive development for ASX gold stocks.
Evolution Mining has set a production target of 770,000 ounces of gold at an all-in sustaining cost (AISC) of A$1,370 per ounce for fiscal year 2024. Similarly, Northern Star plans to sell between 1.6 to 1.75 million ounces of gold at an AISC of A$1,730 to A$1,790 per ounce in the same year.
However, these optimistic forecasts are tempered by the inherent volatility of the rate hike cycle and other factors influencing commodity prices, suggesting that caution should be exercised.
In other ASX news, FIN Resources emerged as one of the top-performing miners in October due to significant lithium discoveries at the Cancet West and Ross projects in James Bay, Canada. Trading halts were announced for Bowen Coking Coal, Lithium Plus Minerals, and Copper Search due to capital raising initiatives.
ASX futures rose by 1%, indicating optimism in Australian shares as Wall Street rallies on hopes that the Federal Reserve might halt its interest rate hikes. Major US indices including the S&P 500, Dow Jones Industrial Average, and Nasdaq composite showed positive trends.
US weekly jobless claims saw a moderate rise while mortgage rates fell for the first time in eight weeks but remained close to a two-decade high. The Bank of England held rates at 5.25%, and European shares advanced for a fourth day. The US FTC accused Amazon (NASDAQ:AMZN) of using Project Nessie, a secret algorithm, to deliberately raise prices by over $1 billion, extracting more revenue from independent sellers. Mega-cap growth stocks Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOGL), and Tesla (NASDAQ:TSLA) all saw an increase, with Tesla being the biggest winner at 5.7%. Brent oil traded above $US85.
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