Gold price continues to reach unprecedented levels

Global events have pushed the gold price in the United States and Australian dollar to record levels as the precious metal strengthens its position as a safe haven for investors.

The price broke the $2000 an ounce mark in the Australian currency for the first time ever on June 20 and has continued to rise, reaching another all-time high of $2050 yesterday.

Australia isn’t the only country that is benefiting off global uncertainty either, with the US gold price reaching a six-year high of $US1434 this week.

The price of the commodity has continued to grow in response to insecurity in the global financial and political sphere.

The most recent influencer has been the announcement of sanctions against Iran by US President Donald Trump, exacerbating investor concerns that are already high given the US-China trade war.

Other factors contributing to the continued rise in gold price can be attributed to interest rate cuts made by the Reserve Bank of Australia and the weakening dollar.

While Australia’s large gold miners are benefiting from the gains, mid-tier miners also enjoyed share price increases yesterday.

Saracen Mineral gained 6.1 per cent to $3.85, while St Barbara rose 5.5 per cent to $3.08. Resolute Mining also climbed 3.7 per cent to $1.25.

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.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.