Gold surges to record highs as US shutdown continues and rate cuts loom | The Business | ABC NEWS
The price of gold has risen more than 50 per cent in the past 12 months to almost $4,000 US dollars an ounce. UBS forecasts it will reach $4200 dollars by the end of 2026 and stay there for most of next year. Gold is set to overtake LNG to become Australia’s second most valuable export after iron ore. Analysts say global factors including the US government shutdown and risk of recession in the world’s biggest economy are driving the gold price higher. They say gold is an excellent hedge against inflation, and a safe haven amid global instability and economic uncertainty. Central banks are also buying the precious metal to diversify away from American assets, including reducing holdings of bonds and the US dollar. At The Perth Mint, demand for gold isn’t just being driven by central banks. In the past fortnight, there’s been 7,500 customers queuing a week, many lining up to buy gold bars. Jewellery sellers are also seeing a surge in sales.
#ABCBusiness
Subscribe: http://ab.co/1svxLVE
ABC NEWS provides around the clock coverage of news events as they break in Australia and abroad. It’s news when you want it, from Australia’s most trusted news organisation.
For more from ABC NEWS, click here: https://ab.co/2kxYCZY
Watch more ABC NEWS content ad-free on ABC iview: https://ab.co/2OB7Mk1
Go deeper on our ABC NEWS In-depth channel: https://ab.co/2lNeBn2
Like ABC NEWS on Facebook: http://facebook.com/abcnews.au
Follow ABC NEWS on Instagram: http://instagram.com/abcnews_au
Follow ABC NEWS on X (Twitter): http://twitter.com/abcnews
Note: In most cases, our captions are auto-generated.
#ABCNEWS #ABCNEWSAustralia
