JOHANNESBURG (miningweekly.com) – The United Kingdom’s (UK’s) vote to leave the European Union (EU) has driven the Australian dollar gold price to an all-time record on Friday.
The likely ‘leave’ result pushed the Australian dollar gold price as high as A$1 830/oz in early afternoon Friday trading in Sydney.
The Australian dollar gold price was driven by a US dollar gold price that rose more than $85/oz at one stage to near $1 345/oz and a lower Australian dollar exchange rate, said Melbourne-based mining consultants Surbiton Associates.
The previous Australian dollar record of A$1 806.50/oz was set on August 22, 2011. This occurred when the US dollar gold price stood at $1 877.50/oz and the Australian dollar was worth 104 US cents.
“We have been following the US dollar gold price and the US/Australian dollar exchange rate changes closely all day,” said Surbiton director Dr Sandra Close. ”Things are moving so fast that it is hard to keep up.”
Gold prices rose from the opening bell in Sydney this morning. After fluctuations in response to the early voting results, prices began rising steeply in afternoon trading. The main driver behind the rise in the US dollar gold price was the uncertainty emerging over what would follow Britain’s departure from the EU and whether other countries in the EU might follow Britain’s example.
“One thing I have learned over time is that the gold market is full of surprises,” Close said. “Trying to forecast gold prices, or the price of any commodity, is a futile exercise - after all, you simply cannot predict the future.”
Australia is the world’s second largest gold producing country behind China. In 2015, Australia produced 285 t of the yellow metal.