Gold prices reach historic levels in Australian dollars

Gold prices have today hit an all-time high, breaking the $1900 per ounce mark in the Australian currency for the first time.

The gold price has rallied over the past six days, having risen over $50 to reach $1906 this morning, according to data on the ABC Bullion website.

Major Australian-based gold miners have responded to the price rise, with Newcrest Mining adding 1.06 per cent overnight to $28.51.

Northern Star Resources gained 1.2 per cent to $10.08, while Evolution Mining jumped 2.12 per cent to $4.095.

Gold prices have often spiked throughout history largely in response to global events and uncertainty, according to managing director of Surbiton Associates, Sandra Close.

“Whenever the US dollar price goes up and the Australian exchange rate weakens, it’s always positive for the Australian dollar gold price, and useful for all Australian operations who have their costs in Australian dollars,” Close said.

“Other factors that are contributing to the gold price include Brexit uncertainty and the US-China trade war.”

Gold is often seen 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.

Since then the price fell as the US economy recovered and inflation remained low.

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