Gold prices have surged above $US5000 an ounce on Friday, building on gains from the previous two sessions, as investors closely monitor escalating tensions in the Middle East. President Trump’s comments on limiting nuclear deal negotiations with Iran to a short timeframe, coupled with a significant build-up of US forces in the region, have fuelled concerns and increased demand for safe-haven assets like gold.
The gold market has experienced considerable volatility recently, marked by a sharp decline earlier in the month. Prices plummeted from above $US5595 to approximately $US4400 within two days, following a surge of speculative buying in January that propelled a multiyear rally to extreme levels. Despite this correction, underlying factors such as a shift away from sovereign bonds and currencies continue to support gold’s appeal.
On the Australian Securities Exchange (ASX), most gold miners saw gains on Friday. However, Newmont, the world’s largest gold producer, experienced a 2.4 per cent decline. Newmont is an American independent gold mining company, and a producer of copper, silver, zinc and lead. Headquartered in Denver, Colorado, Newmont has active operations in Nevada and other regions. The company anticipates a roughly 10 per cent decrease in output this year due to planned upgrades at several of its mines.
