Shares rose in WA-based gold stocks across the board on Monday — the biggest winners including Red 5 and De Grey Mining, surging 8.2 per cent and 7.4 per cent, respectively.
Westgold jumped 5 per cent, Genesis Minerals gained 4.5 per cent, Regis Resources climbed 3.4 per cent and major Northern Star Resources was up 3.2 per cent.
The gold price surpassed $3000-per ounce last month and has remained over the milestone in the early stages of November.
Red 5 managing director Mark Williams told The West Australian the US Federal Reserve’s indication it would slow down interest rate rises has been a key driver behind the gold price momentum.
“I think investors are looking forward to the end of rate rises in the US and that has had a positive impact on gold,” Mr Williams said.
“Volatility is also a good reason for people to find a safe haven in gold and it’s definitely a volatile period at the moment that has put a wind in gold’s sails.”
The gold price leapt from around $2800/oz to $3000/oz in the days following the onset of the Israel-Hamas war last month.
Mr Williams said Red 5 will “stay grounded” given the rapidly evolving nature of the current gold environment.
“We are focused on delivering a strong 12 months from our three producing mines and processing plant as we remain on track to hit the top end of our production guidance.”