Shares of Australian gold miners surge as yellow metal price hits 2-year high of $1,371.23/ounce

Gold prices started to fall in 2013, causing the top three miners – Barrick Gold, Goldcorp and Kinross Gold Corp - to accumulate combined losses of US$16 billion (A$21.57 billion). Thanks to the Brexit vote, gold prices hit a two-year high on Wednesday with spot gold price hitting US$1,371.23 (A$1,848.74) before settling to US$1,368.22 (A$1,844.62) per ounce.

At 9:40 am, Australian dollar gold price was trading at $26 an ounce higher at $1,842.76, boosting shareprices of ASX-listed miners to record high, according to Kitco data, reports Yahoo Finance. Stocks of Newcrest Mining surged 2.75 percent to $25.81 in early afternoon trading, Regis Resources jumped 4.73 percent to $3.88 and OceanaGold increased 4.6 percent to $5.69, reports The Australian.

The bull gold market is due to investors considering the yellow metal as safe haven as the sterling dips due to the fallout from the Brexit vote.

Gold miner Sta Barbara logged a 6.29 percent hike, up 21 cents, after it reported record production at its Gwalia gold mine near Leonora for the third straight year, to $3.55. Sta Barbara’s combined production in 2015-16 financial year reached 386,564 ounces from its Gwalia and Simberi operations in Papua New Guinea. Gwalia accounted for 69 percent of the production.

Evolution Mining, Australia’s second-largest gold producer, breached the $3 mark for the first time when it traded at $3.91 at 9:30 am for an 8.66 percent gain. Likewise Northern Star Resources, the third-largest gold producer, reached a new all-time record price of $5.82 on Wednesday morning.

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