Australian gold price hits new record high amid global uncertainty

The Australian gold price has surged beyond the AUS$2,000 per ounce mark for the first time, boosting a number of Australian-listed mining companies.

Newcrest Mining’s stock rose by 4.1% to $31.78 after the gold price peaked at $2,013 per ounce on Thursday, while St Barbara rocketed up 10% to $2.94. Other beneficiaries included Northern Star Resources and Perseus Mining.

The sustained growth in the Australian gold price can be attributed to rising jitters across global markets, with gold viewed as a safe haven investment in turbulent times.

“Gold price can move very quickly, when sentiment changes gold prices will jump, it won’t be a gradual change,” said IBISworld senior industry analyst Jason Aravanis.

“One big factor is the US-China trade war, as it gets uglier, we expect to see more demand for people to hold gold.”

Aravanis also pointed to weakening Australian data combined with rising demand for gold. “We’re seeing the Australian dollar decline over time because of gradually worsening economic data, despite benefiting off really high iron ore prices.

“The Reserve Bank has cut interest rates already and we expect another two cuts before the end of the year, all that rhetoric makes investors afraid of losing real wealth to inflation if they hold investment assets,” he added.