Gold Miners Shine as Prices Climb Amid Geopolitical Tensions

Highlights:

• Genesis Minerals Limited (ASX: GMD) led gains on the ASX 200, rising 6.5% at the time of writing, as gold stocks rebounded strongly.
• Spot gold hovered near US$3,400 after a 2.8% surge, driven by renewed US-China tensions and stalled Russia-Ukraine talks.
• Investors flocked to gold as a safe-haven asset amid global geopolitical uncertainty and ongoing market volatility.

Safe-haven demand lifts ASX-listed gold stocks

Gold-related shares surged on Tuesday as global investors sought refuge in the precious metal amid escalating geopolitical uncertainty. At the time of writing, Genesis Minerals Limited (ASX: GMD) led the ASX 200, climbing 6.5%. Fellow gold miners West African Resources Limited (ASX: WAF) and Regis Resources Limited (ASX: RRL) followed closely, gaining 5.6% and 5%, respectively.

Spot gold steadies near record levels

Spot gold hovered around US$3,400 on Tuesday, maintaining momentum after a 2.8% surge in the previous session. The rally was driven by mounting geopolitical risks and market anxiety, as investors reacted to renewed tensions between the United States and China, alongside a lack of diplomatic progress in the second round of Russia-Ukraine peace talks. The yellow metal, known for its safe-haven qualities and low correlation with equities, saw increased inflows as global market participants sought stability amidst uncertain macroeconomic conditions.

Geopolitical risks revive appetite for gold

Rising friction between major global powers and stagnating diplomatic efforts in Eastern Europe have shifted investor focus toward defensive assets like gold. With inflation pressures still lingering and monetary policies remaining unpredictable, gold’s appeal as a wealth-preserving instrument has been revitalized. Analysts expect continued strength in gold prices if tensions persist or worsen, potentially fuelling further upside in the sector. ASX-listed gold miners, especially those with lower production costs and strong balance sheets, are well-positioned to benefit. As markets remain volatile and geopolitical headlines dominate investor sentiment, the gold sector appears to be reclaiming its status as a key performer on the Australian Securities Exchange.

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