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Australian gold price hits all-time record

Published by , Editorial Assistant
Global Mining Review,

The Australian dollar gold price hit an all-time record of A$2874 per ounce overnight, exceeding the previous high of A$2868 per ounce recorded on 6 August 2020, according to Melbourne-based gold mining consultants Surbiton Associates.

The record Australian dollar gold price has resulted from a combination of a high US dollar gold price and a lower Australian dollar exchange rate versus the US dollar. The conventional daily Australian dollar gold price is calculated using the London Bullion Market Association’s afternoon (pm) gold price fix and the Reserve Bank of Australia’s official exchange rate.

Dr Sandra Close, a director of Surbiton Associates, said: “US dollar gold prices have surged in the last few days due to the failure of three US banks, including Silicon Valley Bank, the 16th largest bank in the US. Yesterday’s public disclosure of Credit Suisse’s problems has now further destabilised the market.”

The knock-on effect has caused investors and depositors in the US and overseas to question the stability of other banks and has caused a flight to safety.

Dr Close continued: “Gold is the ultimate safe-haven, it is no-one’s liability. If you own gold, it is not a piece of paper, not bank note and not a promise to pay the bearer – it is all yours. Also, it is virtually indestructible, easily transportable and recognised all over the world. Although ASIC costs in the mining industry are rising, some of the producers are enjoying very high margins. In the December quarter 2022, operations such as Newcrest’s Cadia, (ASIC of A$49 per ounce); Evolution’s Cowal (ASIC A$1042 per ounce) and Capricorn Metals’ Karlawinda (ASIC A$1105 per ounce) had margins well over one hundred percent and are doing very well.”

Surbiton Associates’ Media Release on 5 March 2023 highlighted the importance of the Australian dollar exchange rate and the fact that Australian gold producers are benefitting from high Australian dollar gold prices.

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Australian mining news Gold mining news