Gold prices continue rollercoaster, shoot to another record

Image: ABC Bullion.

Australian gold prices have hit seven-year highs yet again, with ABC Bullion recording a price of $2712.49 per ounce last week, before dropping over the weekend and settling back at $2672.78.

With uncertainty surrounding the world economy because of the coronavirus and crude oil price crash, gold prices have been a rollercoaster throughout the start of 2020.

After dropping dramatically to a low of $2449.13 an ounce in mid-March, prices spiked above $2700 again at the end of the month.

The United States gold price had an increase of 7.90 per cent to $1769 per ounce, according to Market Index.

Australian stock prices reflected this jump in prices, with Newcrest Mining shares rising by 8.15 per cent to $27.73 per share this morning, at the time of writing.

Northern Star Resources also had an increase of 10.08 per cent to $12.67 while Evolution Mining recorded an increase of 8.48 per cent to $4.92.

According to commodities and currency trader John Moncrief, the continuing fight against coronavirus will continue to dominate the markets both in the United States and worldwide.

“The developing reaction in commodities markets to an agreement on a massive worldwide cut to oil production in particular, will draw some attention,” Moncrief said.

“As we move through the next couple of weeks, the United States economy’s macro data isn’t expected to get any better.

“Gold and other safe havens have been moderately reactive to bad news in recent month but since it comes this month at the same time as retail sales data, there may be too much noise to see a push on the gold chart.”

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