Gold miners led the charge in a materials sector rally on the Australian Stock Exchange (ASX), with six companies ranking among the top 10 performers of the ASX 200.
Among the leaders were Bellevue Gold, up 4.55%, followed by Westgold Resources (4.29%), Regis Resources (4.05%), West African Resources (3.52%), Genesis Minerals (3.1%), and Capricorn Metals (2.23%). These six gold stocks contributed to a standout performance by the materials sector, which rose by 1.48%. This helped the ASX 200 gain 0.44% by midday AEDT.
Despite the gains in the mining sector, spot gold prices remained steady at US$2,648.50 ($4,261) per ounce, according to Bloomberg data.
The rally was fueled in part by favorable market conditions on Tuesday, with gold prices receiving a boost from a weakening US dollar and news of gold purchases by China’s central bank in December. However, the momentum eased as the US dollar strengthened following recent economic data, which indicated a cautious outlook from the US Federal Reserve regarding interest rate cuts this year.
Regis Resources reported increased production for the December quarter and noted that record gold prices had bolstered its cash reserves and bullion holdings. Similarly, West African Resources saw a rise in its share price after reporting a boost in output at its Sanbrado mine in Burkina Faso, which helped it meet the upper end of its 2024 production guidance.
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