Australian investors have flocked to gold as a safe haven commodity amid rising fears of a global recession.
It comes against the backdrop of growing tensions in the US-China trade war and the Australian dollar hitting a decade low of 66.72 US cents after the Reserve Bank of Australia (RBA) cut interest rates to a record low 0.75 per cent.
Despite the ASX 200 dropping 2.2 per cent yesterday, Australian gold companies benefited off the market volatility, with the top five gains for Thursday all represented by miners of the precious metal.
Saracen Minerals was the biggest beneficiary, rising 4.07 per cent to a closing price of $3.58 yesterday, while gold majors Northern Star Resources and Newcrest Mining added 3.54 per cent and 2.75 per cent respectively.
Rounding out the top five was Silverlake Resources and Evolution Mining, both rising 2.2 per cent and 2 per cent respectively.
It comes as the gold prices continues to hover around the $US1500 per ounce mark, a level that before August this year, hadn’t been seen since the mining boom of 2012.
Similarly, in the Australian currency, the gold price seems to be continuing its stellar run in 2019, reaching an all-time high in August of around $2285 per ounce.
The daily price surged up $45 earlier this week on the same day as the RBA cut interest rates, representing a pattern that has occurred throughout history.
Gold is often viewed as a safe haven given its price increases in response to events that cause the value of paper investments, such as stock and bonds, to decline.
The previous high per ounce of gold in Australia was $1895 on September 5, 2011 in response to concerns that the United States would default on its debt, in the height of the global financial crisis.