Gold prices have moved to their highest point since 2011 this week as they approached $US1900 ($2662) an ounce.
According to data from ABC Bullion, the precious metal settled at $2624.46 on July 23, maintaining its safe haven status among investors as the US dollar dropped by 0.3 per cent as it neared two-year lows earlier in the week.
Gold prices jumped by more than 1 per cent in the United States as the country’s unemployment rate continued to rise due to the coronavirus pandemic and jobless claims raised concerns of a slower economic recovery.
“The macro environment continues to evolve favourably for gold with the dollar index weakening to two-year lows and negative real yields falling further,” Standard Chartered analyst Suki Cooper said.
“Expectations of further stimulus and heightening geopolitical tensions continue to bolster safe-haven demand.”
Australian gold producers have basked in seven to nine year price highs, achieving record sales and averaging realised prices upwards of $2000.
Northern Star Resources sold its gold at an average price of $2487 per ounce during the 2020 financial year compared with $2027 per ounce in September last year.
Newcrest Mining also took advantage of gold’s high prices, with its average realised gold price for the 2020 financial year sitting at $US1530, surging upwards from $1269 in 2019.