Gold prices surge to six-week highs

Mound of gold on a old wooden work table

Spot gold prices have risen to a high of $US1759.70 ($2298.06) per ounce on Thursday, reaching its highest point in over a month.

The spot gold asking price is $US1755.20 per ounce at the time of writing.

This follows recent pressures over declining gold prices due to an increase in certainty around the COVID-19 pandemic.

The latest improvement follows last year’s bullish gold prices that were driven by the commodity’s status as a “safe-haven” investment during the pandemic.

In March, Fitch Solutions dampened its gold prices forecast due to the metal trending to a seven-month low.

The company lowered its expected $US1850 an ounce price to $US1780 an ounce for 2021, but predicated that inflation over March to April would likely pick up.

“Gold prices have trended lower since the start of 2021, amid rising US treasury yields and an increasingly positive outlook for the economic recovery,” the company stated.

“Investor sentiment towards gold has also continued to ease significantly in recent months following the rally recorded in (the first half of 2020) and the peak in prices reached in August last year.

“… We continue to hold a below-consensus view on gold prices, in 2021 and beyond.”

Fitch expects the precious metal’s price to trend lower beyond 2022 due to increases in bond yields and interest rates.

Western Australia’s Department of Mines, Industry Regulation and Safety (DMIRS) reported record sales for gold in 2020, reaching an all-time high of $17 billion in Western Australia, off the back of last year’s record average $2500 per ounce gold price.

Western Australia delivered a record $174 billion in resources sector sales last year.

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