Australian gold stocks, such as Northern Star Resources (ASX:NST) and Newcrest Mining (ASX:NCM), have fallen as much as 1.9%.

The macroeconomic backdrop of gold is looking uncertain following the US Federal Reserve’s increase in rates by another 25bp while leaving the potential for further increase in September.

This observation was made by ANZ Research.

Atlanta Federal Reserve Bank President, Raphael Bostic, commented on Tuesday that he does not foresee any rate cuts until the second half of 2024.

ANZ further noted that investment demand remains lackluster as investors are waiting for the Federal Reserve to conclude its tightening cycle.

Both Northern Star Resources and Newcrest Mining have seen a decline in the range of 1.05% to 2.9%.

With shifting expectations surrounding the terminal rate, the upside may be capped in near term, according to an anonymous brokerage.

Despite the fall off, gold stocks have witnessed an increase of 15.6% YTD, as of last close, vs a 5.9% gain in the benchmark index.

Northern Star Resources is a leading gold production company, while Newcrest Mining is a prominent name in the production and exploration of gold and copper.