The Australian gold price has continued to surge this week, breaking the $2000 an ounce mark for the first time amid global uncertainty.
Gold prices on Thursday afternoon peaked at $2013 per ounce, with Australian listed mining companies benefiting from the commodities rise.
Newcrest Mining jumped 4.1 per cent to $31.78 as it continues its successful past year, having risen almost 50 per cent.
St Barbara was also a huge beneficiary from the rise in gold price, increasing by 10 per cent to $2.94.
Other Australian gold miners that rose off the back of the gold price were Northern Star Resources, up 9.25 per cent to $11.70, and Perseus Mining, up 21 per cent to $0.60.
The sustained growth of the Australian gold price can be explained by a number of factors regarding volatility in the global financial market according to IBISworld senior industry analyst Jason Aravanis.
“Gold price can move very quickly, when sentiment changes gold prices will jump, it won’t be a gradual change,” he said.
“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 noted that the gold price might continue to grow given the weakening Australian dollar combined with the rising demand of gold.
“We’re seeing the Australian dollar decline over time because of gradually worsening economic data, despite benefiting off really high iron ore prices,” he said.
“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.”
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 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.