Gold prices on the way up

Gold prices are looking set to crack the $US1400 mark yet again, with surges over the last three weeks leading to a finish of $US1385 per ounce last week.

With the Australian dollar sitting at 90 US cents, the Australian gold price has hit $1536.

The new prices come as a relief to gold miners, especially Newcrest Mining Limited, pegged by the pundits to win big in the long term from the rising prices thanks to substantial reserve holdings of the precious commodity.

At their current rates of gold production of 2.3 million ounces per year, Newcrest has been tipped for a reserve life of 34 years, more than those of the biggest miners Barrick Gold and Newmont Gold.

Uncertainty related to the unrest in the Ukraine has been linked to recent surges in the gold price, however Ramelius Resources managing director Ian Gordon commented to the ABC that this is not the only factor.

"Events like the unrest in Ukraine do spur on the price of gold, but I don't know if it's as important as people say, but it's in the mix of factors.

"I think also the gold price is rebounding as it should after dropping so dramatically last year."


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