Gold Rush Intensifies as Prices Soar: Australian Miners Ramp Up Exploration to 31-Year High

Stock News
Dec 01

With gold prices surging to record highs this year, Australian mining companies are significantly increasing exploration efforts to discover new gold deposits. According to data from the Australian Bureau of Statistics, mining firms invested a total of AUD 431.5 million (approximately USD 238 million) in exploration during the three months ending September—the highest quarterly exploration expenditure since records began in 1994. Major Australian gold producers include Newmont Corporation (NEM.US), Northern Star Resources, and Evolution Mining.

Warren Pearce, CEO of the Association of Mining and Exploration Companies, stated, "Gold has demonstrated exceptional resilience in sustaining explorer interest, clearly supported by recent high prices and ongoing global market uncertainties." Gold prices have rebounded recently, partly due to renewed expectations of Federal Reserve rate cuts. As of the latest update, spot gold rose 0.54% to USD 4,253.68 per ounce.

Is the gold bull market far from over? This year, investors ranging from retail traders to hedge funds have turned to gold—traditionally seen as a safe-haven asset during turbulent times—as a hedge against inflation risks, geopolitical tensions, and a weaker U.S. dollar. Central banks worldwide have also flocked to the gold market, attracted by its high liquidity, default-free nature, and neutral reserve asset status. Driven by multiple factors, gold prices have surged over 60% in the past year.

Despite the sharp rally, a Goldman Sachs survey reveals that many investors believe the precious metal could reach a historic high of USD 5,000 per ounce by 2026. The survey, conducted among over 900 institutional clients on Goldman’s Marquee platform from November 12–14, showed that 36% of respondents (the largest group) expect gold to maintain momentum and surpass USD 5,000 by the end of next year. Another 33% predict prices will rise to between USD 4,500 and USD 5,000. Goldman Sachs concluded that over 70% of institutional investors anticipate further gold price gains, while just over 5% foresee a decline to USD 3,500–4,000 within 12 months.

Among the survey respondents, 38% attributed gold’s upward trajectory to continued central bank purchases, while 27% cited fiscal concerns. Phil Streible, Chief Market Strategist at Blue Line Futures, noted that gold’s rally could extend into 2026, supported by a global economic outlook favoring the metal as many nations grapple with slowing growth and persistent inflation.

Other Wall Street institutions share this optimism. JPMorgan forecasts gold prices will exceed USD 5,055 per ounce by Q4 2026, while Morgan Stanley projects USD 4,400 by late next year. Deutsche Bank raised its 2026 gold price forecast from USD 4,000 to USD 4,450 per ounce, suggesting structural factors could push prices toward USD 5,000.

In its November "Precious Metals Report," Sprott Asset Management highlighted that structural drivers of gold’s rally remain far from exhausted, with investors shifting away from dollar-denominated bonds and inflation-vulnerable equities toward precious metals and cryptocurrencies.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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