Australia is experiencing a surge in gold demand, driven by global economic uncertainty, which is expected to push gold past natural gas to become the country’s second-most valuable resource export.
Gold futures have jumped about 50% since the start of 2025, breaking through the US$4,000 ($6,071) per ounce mark for the first time. This boom is projected to add an extra $13 billion to Australia’s resources and energy export revenue this financial year compared to 2024–25, offsetting declines in other major commodities.
Gold exports are expected to rise from $47 billion in 2024–25 to $60 billion this year and remain largely steady next year. In contrast, liquid natural gas (LNG) revenues are set to fall from $65 billion to $48 billion due to lower oil prices and increased supply from the US and Qatar. Iron ore, despite higher production, is also expected to drop in value, bringing in $3 billion less this year and another $10 billion less in 2026–27.
Minister for Resources and Northern Australia Madeleine King highlighted that gold continues to create wealth and jobs for the Australian economy, while critical minerals are becoming increasingly significant for the country’s export mix.
The rise in gold prices is fueled by investor anxiety amid global uncertainty, including trade tensions and economic disruptions in the US, the ongoing US government shutdown, and volatility in currency markets. The US dollar has weakened sharply, while the Australian dollar has appreciated against it, making gold even more attractive as a “safe haven” investment.
Experts note that gold offers diversification and a tangible store of value but caution that it is not without risks. Critics argue that gold is not always an effective hedge against inflation and that precious metals can be highly volatile, benefiting sellers more than investors during periods of economic instability.
Silver has also benefited from these trends, with futures up about 60%, trading near US$48 per troy ounce. The current environment highlights both the opportunities and risks associated with investing in precious metals amid global economic uncertainty.
