Gold prices reached all-time highs on Monday, currently trading around US$2,734.60 an ounce.
The conflict between Israel and Hamas has intensified, raising fears of further disruptions in the region and prompting movement to the safe haven asset.
Additionally, central banks are expected to ease monetary policy in the coming months. Lower interest rates tend to weaken the US dollar, making gold a more attractive investment.
Other precious metals, such as silver and platinum, have also seen gains, but none as significant as gold. Analysts suggest that as long as geopolitical instability persists and inflation concerns remain, gold could continue to rally.
This surge has influenced the performance of Australian gold stocks, with the ASX All Ordinaries Gold Index rising by 12.47% over the week.
Among companies seeing notable movements, Gold Road Resources (ASX:GOR) gained 9.58% over the past week, closing at $1.945 per share. The company’s Gruyere gold mine production remains strong, contributing to its upward trajectory. Northern Star Resources (ASX:NST), one of Australia’s largest gold miners, saw its shares rise 9.02% over the week.
Catalyst Metals (ASX:CYL), a smaller player, experienced a remarkable 19.39% increase in its stock price over the week, reflecting investor optimism in its Plutonic and Henty mines’ production improvements. Meanwhile, Newmont Corporation (ASX:NEM), despite operational challenges earlier this year, saw an 8.81% rise in its share price over the week.