While other metals and minerals have felt the sting of falling prices, gold is showing no sign of slowing down.
The precious metal has been consistently trading above the $US1900 per ounce (oz) mark for almost six months straight.
And things took an even sharper turn for gold late last week, with the commodity reaching $US2400 ($3745)/oz for the first time ever.
With so much volatility elsewhere in the resources sector, why is gold enjoying this singular success?
According to Chris Weston, head of research at finance broker Pepperstone Group, “there’s a sizeable geopolitical premium being priced into (gold) moves” and that the rising tensions in the Middle East are “a reason in itself to buy gold”.
The price of gold is expected to continue its run in 2024 due to various factors such as geopolitical disruptions, a weakening US dollar and rising inflation.
Beyond 2024, the Federal Government’s ‘Resources and Energy Quarterly’ (REQ) forecasts a long summer for gold.
The REQ expects gold prices to be averaging $US2030/oz in 2025. By 2029, the average gold price is forecast to be about $US1950/oz.
Australia is well positioned to capitalise on this stubborn metal’s long-term prospects. National gold production is expected to be bolstered by several major mine expansions.
Pantoro is ramping up production at its Norseman project, which has a current mineral resource is 4.8 million ounces of gold with an ore reserve of 973,000 ounces.
Calidus’ Warrawoona project, Genesis Minerals’ Ulysses project, and Bellevue Gold’s namesake project are also on the way.
Westgold’s 1.4-million-tonnes-per-year Great Fingall project continues to be developed and is set to achieve first production in 2024.
Northern Star’s recently expanded Thunderbox mill ramped up to reach nameplate capacity in 2023, resulting in production increasing by 28 per cent year-on-year to 5.9 million tonnes.
And with many more projects on the horizon, it’s a bright future for Australian gold.
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