Gold breaches $US1800/oz as Aussie stocks rally

A 3D illustration of rising gold prices on the stock market.

Gold prices have reached eight-year highs, breaking through $US1800 ($2603) an ounce for the first time since 2011.

The precious metal reached $US1810 before settling at $US1780 on July 1.

ASX-listed gold miners Newcrest Mining, Kirkland Lake Gold, Northern Star Resources and Saracen Mineral Holdings all responded to the price rise with an uptick in share prices overnight.

Newcrest Mining jumped 3.2 per cent to $32.53, while Kirkland Lake rose 4.4 per cent to $60.39.

Northern Star also gained a whopping 7 per cent to $14.30, and Saracen Mineral added 4 per cent to $5.64.

Edison Investment Research director Charles Gibson said in June that there was no end in sight for the gold rush.

“Gold, with its safe haven and monetary status has been an obvious beneficiary of the current uncertain environment and that seems unlikely to change for as long as the coronavirus remains a largely unknown quantity,” he said.

Often viewed as a safe haven commodity, the yellow metal has rallied in light of coronavirus since late last year, and the low interest rates and local and global economic slowdown it has triggered.

Crude oil price crash and US-Iran tensions earlier in the year also led to the notorious rise of gold prices.

This builds on a 20-year pattern where gold, according to ABC Bullion, has consistently seen strong returns.

IBISWorld also predicted that higher gold prices would drive a 4.7 per cent revenue growth for the gold ore mining industry in 2019–2020.

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