ASX Junior Gold Stocks Spark Investor Frenzy Amid Bullish Momentum

Key Highlights:

• Gold recently touched an all-time high of US$3,500/oz before consolidating near US$3,302
• ASX junior gold miners log double-digit gains as investor sentiment accelerates
• China’s demand soars; Paulson sees $5,000/oz by 2028; ETFs, mining plays drive interest

The gold market continues to command attention as prices consolidate above US$3,300 an ounce following a record rally that saw the yellow metal peak at US$3,500/oz last week. This historic high has stirred significant investor momentum into junior gold stocks on the ASX, many of which surged double digits as they seek to catch up with bullion's meteoric run.

At the time of writing, spot gold sits at US$3,382.78, down a modest 0.43% from the previous session but still boasting a 6.82% monthly rise and an impressive 25.86% gain year to date. Over the past 12 months, gold has climbed a staggering 41.47%, buoyed by central bank buying, geopolitical risk, and a weakening U.S. dollar narrative.

This macro backdrop has reignited speculative and strategic interest in ASX-listed junior explorers. Tennant Minerals (ASX: TMS) led the charge with a 40% surge, followed by New Age Exploration (ASX: NAE) up 33%, and Core Energy Minerals (ASX: CR3), Asra Minerals (ASX: ASR), and Tyranna Resources (ASX: TYX), each rising 25% on the day. Dateline Resources (ASX: DTR) also posted a strong 16.22% gain, bringing its one-year return to a staggering +330%.

Top 20 ASX Gold stocks - 7th May 2025

These rallies underscore a growing appetite for high-risk, high-reward plays among retail and institutional investors. With gold ETFs and U.S. mining stocks also attracting heavy flows, it’s clear that risk-off sentiment continues to dominate, and smaller-cap equities are becoming vehicles for upside exposure.

April’s global gold demand reached its highest since 2016, according to industry data, with China playing a pivotal role—bar and coin demand in the region jumped 30% year over year. This buying frenzy, coupled with central bank accumulation, has laid the foundation for ultra-bullish outlooks.

Among those sounding the bullish horn is billionaire hedge fund manager John Paulson, who forecasts gold reaching US$5,000/oz by 2028. Paulson attributes the outlook to increasing mistrust in fiat reserves and the rise of gold as a geopolitical hedge. “Russia’s gold wasn’t touched,” he noted, referencing Western sanctions and the untouched nature of physical reserves during the Ukraine crisis. “That’s what woke up the rest of the world’s central banks.”

Paulson’s own portfolio now includes a 40% stake in NovaGold’s Donlin project in Alaska and top-shareholder status in Idaho-based Perpetua Resources, underlining his belief in U.S.-led gold mining growth as a new chapter in the sector.

With the ASX Small Ords and the All Ordinaries Gold Index also trending higher, investors are eyeing continued volatility as an opportunity rather than a threat.

With gold now consolidating at US$3,385.26 per ounce—slightly off last week’s highs but still elevated—investor momentum remains robust. ASX junior gold stocks have ridden the coattails of this rally, and all eyes are on whether this momentum carries into tomorrow’s session. Will the bullish sentiment extend, or will profit-taking kick in? Either way, the underlying fundamentals and macro forces continue to support gold’s long-term narrative.

It will be interesting to see how ASX junior gold stocks perform in tomorrow’s session—whether they can extend gains or pause for breath amid broader consolidation in bullion. What’s clear is that  junior gold stocks are seeing hightened interest from investors. It could be a scenario that the gold stocks finally catches up with gold bullish run.