Stronger greenback helps boost Australian gold – The Australian Financial Review

by
James Regan

A stronger US dollar is helping drive Australian gold production and buffeting local prospectors from the effects of a global sell-off in bullion, according to a sector survey released on Sunday.

Production of the precious metal in Australia rose by 4 per cent in the second quarter to 72 tonnes versus the previous quarter, second only to China, mining consultants Surbiton Associates said in its latest tally of Australia’s gold mining industry.

A stronger greenback is playing into the hands of Australian prospectors, with the bullion price in Australian dollar terms relatively stable since the start of 2015, according to Surbiton’s director, Sandra Close.

“Despite lower gold prices in US┬ádollar terms, the depreciation of the Australian dollar is proving a blessing for Australian gold producers,” Ms Close said.