The Australian dollar gold price has moved above $2300 an ounce for the first time as fears surrounding the United States–China trade wars have again impacted global economic markets.
Gold peaked at around $2320 an ounce in the Australian currency (or $US1550) yesterday, before finishing Monday on $2266 an ounce, according to data on the ABC Bullion website.
The precious metal continued to be viewed as a safe haven for investors as the tension between the US and China showed no signs of relenting to start the week.
Stocks on the Australian Securities Exchange (ASX) were battered when the market opened, with $30 billion in value reportedly wiped off the bourse.
The Australian dollar, as a result, continued to fall against its US counterpart towards just 67 cents.
Australian gold stocks, however, fared well as the local price of the precious metal benefitted their operations.
Resolute Mining (10.34 per cent), Saracen Mineral Holdings (9.5 per cent), Evolution Mining (9 per cent), Northern Star Resources (8.7 per cent) and St Barbara (6.9 per cent) were yesterday’s top improvers amongst the ASX200.
The Australian gold price is rising as local production also peaks, with output reaching an all-time high of 10.3 million ounces in the 2018-2019 financial year, according to a Surbiton Associates report.
In the June quarter, production in Australia increased by five per cent against the previous quarter behind strong performance at the Cadia (240,903 ounces), Boddington (185,000 ounces) and Fosterville (140,701 ounces) mines.
Surbiton director Sandra Close said the outlook for Australian gold production seemed positive.
“However, many things can happen, I can’t predict the future and am very conscious of the many factors and uncertainties that affect gold prices, exchange rates and production,” Close said.