While other metals and minerals have felt the sting of falling prices, gold has remained strong with record highs showing no sign of slowing down.
The precious metal has been consistently trading above the $US1900 per ounce (oz) mark for almost six months straight.
And things took an even sharper turn for gold this week, reaching $US2400/oz for the first time ever.
With so much volatility elsewhere in the resources sector, why is gold enjoying this singular success?
According to Chris Weston, head of research at finance broker Pepperstone Group, “there’s a sizeable geopolitical premium being priced into (gold) moves” and that the rising tensions in the Middle East are “a reason in itself to buy gold”.
The price of gold is expected to hit record highs in 2024 and remain elevated, despite downward pressure from a strengthening US dollar.
Beyond 2024, The Federal Government’s ‘Resources and Energy Quarterly’ (REQ) forecasts a long summer for gold.
In the long-term, the REQ expects the price of gold to average about $US1950 an ounce in 2029.
Australia is well positioned to capitalise on this stubborn metal’s long-term prospects. National gold production is expected to be bolstered by several major mine expansions.
Pantoro is ramping up production at its Norseman project, which has a current mineral resource is 4.8 million ounces of gold with an ore reserve of 973,000 ounces.
Calidus’ Warrawoona project, Genesis Minerals’ Ulysses project, and Bellevue Gold’s namesake project are also on the way.
Westgold’s 1.4-million-tonnes-per-year Great Fingall project continues to be developed and is set to achieve first production in 2024.
Northern Star’s recently expanded Thunderbox mill ramped up to reach nameplate capacity in 2023, resulting in production increasing by 28 per cent year-on-year to 5.9 million tonnes.
And with many more on the horizon, it’s a bright future for gold.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
