ASX Ends the Week on a Positive Note
The Australian Securities Exchange (ASX) saw a recovery on Friday, closing out a volatile trading week. The S&P/ASX 200 index rose by 19.5 points, or 0.23%, reaching 8,342.3 points. Despite the gain, the index remains 3.17% below its 52-week high, reflecting recent market turbulence.
The materials sector led early trade, advancing 0.65% as it rebounded from a recent downturn. The gold market continued its upward trajectory, supported by increasing demand and a weaker US dollar.
Gold Prices Near Record Highs
Gold prices climbed 0.66% to AUD 4,463 per ounce, edging closer to their all-time highs. Investors maintained their preference for gold amid geopolitical tensions and shifts in economic policy. The precious metal’s value remains influenced by inflation concerns and uncertainty in global trade.
Spot gold traded at AUD 4,543.46 per ounce, while silver also recorded gains, rising by 0.76% to AUD 50.94 per ounce at the US close. The gold-to-silver ratio stood at 89, reflecting investor preference for gold over silver.
US Market and Treasury Yield Impact
US markets closed lower on Thursday, with the S&P 500 index declining by 0.5% and the Dow Jones falling 1.1%. The Nasdaq dropped by 0.6%, reflecting a broader retreat in equities. Financial stocks led the losses, dropping 1.6% on the S&P 500 index.
US Treasury yields fell following remarks from US Treasury Secretary Scott Bessent, who dismissed speculation about a potential revaluation of government bullion reserves. The US 10-year Treasury yield dropped by four basis points to 4.50%, while the two-year yield declined to 4.26%.
Australian Dollar Gains Against US Dollar
The Australian dollar strengthened against the US dollar, rising from USD 0.6360 to USD 0.6403. The currency benefited from stronger commodity prices and a weaker greenback.
Gold Miners’ Performance in Focus
Several ASX-listed gold miners reported financial results and exploration updates.
Pacgold Defines 12km Gold Anomaly
Pacgold Limited (ASX:PGO) identified a 12km-long geochemical anomaly at the Alice River Project in North Queensland. The company plans to commence reverse circulation drilling in April 2025. Further aircore drilling will be conducted to extend and refine the identified anomalies.
Riversgold Secures 80% Stake in Kalgoorlie Project
Riversgold Limited (ASX:RGL) acquired an 80% stake in the Kalgoorlie Gold Project after meeting its exploration expenditure requirements. The company has now assumed full operational control and will continue its exploration program near the Super Pit, one of Australia’s largest gold mines.
Viking Mines Plans Phase-Two Drilling
Viking Mines Limited (ASX:VKA) will begin its second drilling phase at the Northern Duplex target in Western Australia. The program will focus on a steeply dipping gold zone and a 6km-long geochemical anomaly at the Central Duplex target.
Native Mineral Prepares for First Gold Pour
Native Mineral Resources (ASX:NMR) announced plans for its first gold pour at the Blackjack processing plant in Queensland. Investors reacted positively to the news, increasing the company’s share price by 14% to AUD 0.096.
Gold Miner Financial Updates
Genesis Minerals
Genesis Minerals (ASX:GMD) reported an EBITDA increase of 181%, reaching AUD 153.6 million. Sales revenue rose by 57% to AUD 338.7 million, driven by strong gold production and higher realised prices.
Alkane Resources
Alkane Resources (ASX:ALK) recorded a 14% increase in gold production at its Tomingley Gold Operation (TGO) in New South Wales. The company produced 33,270 ounces of gold in the half-year period.
Westgold Resources
Westgold Resources (ASX:WGX) addressed speculation regarding the potential sale of its Lakewood gold processing facility near Kalgoorlie. The company continues to assess strategic options, including divesting non-core assets.
Gold Road Resources
Gold Road Resources (ASX:GOR) reported a record net profit of AUD 142.7 million for the 12-month period ending December 2024. The company declared a fully franked final dividend of 1.5 cents per share.
Gold Road achieved revenue of AUD 528 million from gold sales, up from AUD 472.1 million in 2023. The company sold 143,793 ounces of gold at an average realised price of AUD 3,672 per ounce.
Outlook for Gold Market
Gold continues to be a favoured asset amid economic uncertainty and geopolitical risks. Investor demand remains strong as inflation concerns persist. The Australian gold sector benefits from stable production and increasing exploration activity.
With gold prices approaching record highs, ASX-listed miners continue to expand their projects and optimise production. The market outlook remains positive as companies seek to capitalise on favourable conditions in the global gold industry.
