ASX gold shares are rallying on Tuesday after the gold price lifted 1.9% to US$2,611.25 per ounce overnight.

The S&P/ASX All Ordinaries Gold Index (ASX: XGD) is up 3.41%, while the S&P/ASX All Ordinaries Index (ASX: XAO) is up 0.86% at the time of writing.

Here's how some of the biggest ASX gold shares are performing today:

• Northern Star Resources Ltd (ASX: NST) shares are up 2.86% to $16.72
• Evolution Mining Ltd (ASX: EVN) shares are up 2.95% to $4.88
• Newmont Corporate CDI (ASX: NEM) shares are up 2.17% to $65.38
• Perseus Mining Ltd (ASX: PRU) shares are up 3.16% to $2.61
• De Grey Mining Limited (ASX: DEG) shares are up 4.41% to $1.47
• Bellevue Gold Ltd (ASX: BGL) shares are up 2.77% to $1.30
• Gold Road Resources Ltd (ASX: GOR) shares are up 2.84% to $1.81

What's behind today's rebound in ASX gold shares?

As usual, the gold price is a factor in the rally of ASX gold shares today.

The gold price is now recovering from its biggest weekly fall since 2021.

The commodity hit a new record high of about US$2,786 per ounce on 30 October. It then commenced a gradual decline to about US$2,562 per ounce by last Friday.

One reason for the declining gold price over the past fortnight was a rally in the US dollar. This followed the surprisingly decisive election victory of United States Republican Donald Trump.

The currency lift led to a fall in the gold price, which also sent ASX gold shares lower.

This 8% dip in the gold price also follows a strong run in 2024.

The precious metal began rising in February and has lifted by more than 30% since then, even when taking into account this month's fall.

According to Trading Economics, a rebound in the gold price has begun now that the US dollar has paused.

Demand for safe-haven assets has also surged amid US President Joe Biden giving Ukraine permission to use long-range US weapons inside Russia.

Biden did this as Russia amassed almost 50,000 troops in Kursk with the hope of retaking the territory from Ukraine.

The analysts added:

Meanwhile, comments from some Federal Reserve officials last week also added uncertainty regarding the timing and extent of potential rate cuts.

Still, markets are currently pricing in around 65% chance of a 25bps rate cut in December.

 Last week, the US Federal Reserve made its second rate cut this year.

What else is happening today?

ASX gold share Newmont is also higher today after the miner announced a major divestment.

As we've reported, Newmont will sell its Musselwhite operation in Ontario, Canada, to Orla Mining for up to US$850 million (A$1.3 billion).

This will be comprised of US$810 million in cash and up to US$40 million in contingent payments.

MPC Markets' Jonathan Tacadena is optimistic about Newmont shares and has a buy rating on the ASX gold share. My colleague Bernd outlined Tacadena's four reasons for buying Newmont stock yesterday.

What's next for ASX gold shares?

According to the Australian Financial Review (AFR), top broker Goldman Sachs has reiterated its forecast for the gold price to reach US$3,000 per ounce next year.

The broker says further interest rate cuts expected next year will further reduce the opportunity costs of holding gold.

Goldman said tariffs underlined gold's role as an inflation hedge, and there was steady demand from central banks.

The broker said the market's sell-off in November provided an "attractive entry point to buy gold".