Australians are capitalising on a dramatic rise in gold prices, with long queues forming outside a prominent Sydney gold dealer on Tuesday.
Dozens of people – more than 50 in total – lined up along the footpath in Martin Place, patiently waiting to enter the Australian Bullion Company (ABC Bullion), one of the country’s top precious metals and bullion specialists.
The surge in interest comes as gold trades at US$4369 (A$6517) per ounce, marking a substantial increase of around US$1794 (A$2676) compared to a year earlier.
Global uncertainties, including the US government shutdown in Washington DC, political instability in France, and turmoil within Japan’s long-dominant Liberal Democratic Party, are driving demand for gold as a safe-haven asset.
The Commonwealth Bank forecasts that gold could climb to US$4500 (A$6714) per ounce by mid-2026.
Analysts have described the metal’s roughly 70 per cent annual gain as “unprecedented,” breaking from historical trends.
IG market analyst Tony Sycamore told NewsWire that the 71 per cent year-on-year increase is extraordinary.
“Holy heck, we are up 71 per cent – why?” he said, calling the rally “crazy” given that gold never rose more than 30 per cent in a single year during past crises such as the global financial crisis, the tech crash, or the Covid lockdowns.
“What are we scared of? We didn’t see anything like this during the GFC or the Covid crash,” Mr Sycamore added.
Gold is widely regarded as a reliable store of value that tends to appreciate over time, particularly during periods of economic or geopolitical uncertainty.
