The price of gold saw out the work week above US$3,000 per ounce, driven to all-time highs amid a bull run fueled by global economic and geopolitical uncertainty.
The price of gold saw out the work week above US$3,000 per ounce, driven to all-time highs amid a bull run fueled by global economic and geopolitical uncertainty.
Having crossed the mark for the first time in history on Thursday, the yellow metal’s price hit US$3,002/oz late on Friday, before slipping back below the magic milestone.
A combination of a weak Australian dollar and a high gold price has the commodity trading at $4,780.33/oz in local currency terms – a mark which will be news to the ears of unhedged Australian producers.
It comes less than a month after analysts from Citi predicted gold would reach the milestone within three months.
In February, ANZ forecast gold would hit $3,000/oz sometime this year.
Its rise has been more rapid than analysts were willing to predict.
A safe-haven asset, the gold price has been fueled by tepid market performance, with uncertainty out of the US due to recent tariffs considered a major catalyst for caution.
The S&P/ASX 200 is down 8.79 per cent this year, while the S&P 500 – tracking the largest companies in the US – has fallen more than 10 per cent since its record close of 6,144.15 points on February 19.
The news is another boost for Australian gold producers, which combined to produced $10.4 billion worth of gold in the December quarter alone – according to analysis by Surbiton Associates.
The average price received for an ounce during the period was $4,075, more than $700 off the current pace set by the commodity.
“The uncertainty in the first quarter of 2025 is even greater, now that President Trump has taken office,” Surbiton director Sandra Close said last week.
“His executive orders, tariffs, backflips and behaviour have resulted in further concerns and further increases in gold prices, both in US dollar and Australian dollar terms.”
A number of gold producers are investing heavily in their futures while the sun shines, with Northern Star Resources, Evolution Mining, Ramelius Resources, Westgold Resources and Greatland Gold among those investing in projects to increase their WA output.
Analysts are bullish on the price, even in record territory, as the signals out of the US generate uncertainty in economies around the globe.
Dr Close said 2024 was the third consecutive year that the world’s central banks purchased more than 1,000 tonnes of gold.
“Another factor that increased gold demand in 2024 was gold buying by central banks, including India, Poland and Turkey,” she said.
“The People’s Bank of China, which had previously ceased gold purchases, also resumed buying gold.”
WA is home to three of the four largest goldmines in Australia by 2024 production – Newmont’s Boddington (590,000oz in 2024), the Gold Fields-Gold Road joint venture Tropicana (447,021oz) and Northern Star’s Kalgoorlie Super Pit (421,454oz).
