Gold prices have surged, holding well above $US3400 an ounce, driven by escalating geopolitical risks in Europe and ongoing uncertainty surrounding US monetary policy. In afternoon trade on Monday, the precious metal was up 0.5 per cent to $US3466.07 an ounce. A viable peace agreement between Ukraine and Russia appears increasingly remote as military actions persist on both sides.
ANZ analysts noted that Swiss gold refiners have resisted relocating operations to the US amidst ongoing tariff negotiations. This, coupled with a futures-to-spot price spread jump above $US85 an ounce, has further fuelled market sentiment. Adding to the support for gold is the growing concern over the independence of the US Federal Reserve, sparked by recent threats to remove governor Lisa Cook, amplifying market uncertainty.
The strong performance of gold has buoyed Australian gold miners, who are bucking the broader market trend of lower stock prices. Capricorn Metals led the charge with an 8.6 per cent increase, followed by Genesis Minerals, which jumped 7.5 per cent. Emerald Resources saw a 6.9 per cent rise, while Northern Star Resources gained 4.7 per cent. Newmont Corporation, a global gold producer, also experienced a lift, firming 1.9 per cent. Newmont Corporation is involved in the exploration, development, and processing of gold. With a focus on sustainable mining practices, Newmont is a significant player in the gold industry.
