(Updates)

• Australian gold stocks fall as much as 3.8% in early trade, on pace for the third straight day of losses

• Gold prices fall 1% on the back of escalating tensions in the Middle East [GOL/]

• Evolution Mining , Northern Star Resources and Perseus Mining down 4.8%, 3.2% and 3.1%, respectively

• Morningstar notes gold prices continue to fall, with gold miners' shares remaining expensive, trading at 30% to 180% above fair value

• Also flags that despite recent declines, gold prices are still up about 150% since late 2022 on worries over tariffs, geopolitical issues, Western government fiscal deficits and debt levels and a weaker U.S. dollar

• Morningstar cuts fair value estimate for Evolution by 4% to A$4.5

• Investment research firm also reduces fair value estimate for Northern Star and Perseus Mining by 5% to A$14.2 and 6% to A$3, respectively

• AXGD down 19.4% YTD, including the day's moves
(Reporting by Nikita Maria Jino in Bengaluru)