While other commodities are being hit by global trade tensions and conflicts in the Middle East and Ukraine, Australia’s gold industry is booming.
Gold is set to become Australia’s third-largest commodity export earner next year, behind iron ore and LNG, with figures forecast to reach $56 billion before prices ease in 2027.
That news comes as Citigroup is predicting gold prices will stabilise between US$3,100 and US$3,500 per ounce in the third quarter, influenced by easing geopolitical tensions and improved global growth.
Price Pressures Continue
The current spot price for gold is US$3,329.53, after demand in the precious metal jumped overnight as US President Donald Trump’s tax bill passed through the Senate.
Analysts are concerned the bill may increase the likelihood of bigger US deficits.
Gold prices had been steady recently as market participants awaited key US economic data and considered the impact of the ceasefire between Iran and Israel, which has dampened safe-haven demand.
Falling Revenues
The Department of Industry, Science and Resources’ June 2025 Resources and Energy Quarterly report says income from mining and oil and gas will largely continue to retreat from historical highs over the coming two years, forecasting export earnings to drop from an estimated $385b in 2024–25 to $369b in 2025–26 and then $352b in 2026–27.
Federal Minister for Resources and Northern Australia Madeleine King said that, despite the lower revenue, export volumes are forecast to increase marginally over this period.
“The latest Resources and Energy Quarterly underlines how Australia remains a trusted and reliable supplier of resources and energy to the world at a time of ongoing global uncertainty,” Minister King said.
“While global commodity prices are easing, the report suggests Australian resources companies will continue to remain competitive on the global stage.”
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The ASX small-cap stories that matter, filed before 9am AEST. Curated by the Small Caps desk.