Bright outlook for gold

Published in the Border Mail, March 2010

AUSTRALIAN goldminers have increased their production amid higher prices and stronger demand, new figures show.

Australian gold output rose seven tonnes, or 13 per cent, to 62 tonnes in the December quarter, compared with the September quarter, according to a report from industry consultants Surbiton Associates.

It was up 14 per cent compared with the prior corresponding period.

"The increase in Australian gold output in the December quarter was assisted by the long-awaited opening of the giant, redeveloped Boddington operation,"

Surbiton Associates managing director Sandra Close said. "Several other operations increased production substantially, taking advantage of the attractive gold price and attractive operating margins."

Wealth Within investment analyst David Harvey said the recent rise in the gold price, from a low of $US1,045 per ounce in early February, reflected increased demand.

"The next test for gold is whether it can successfully move through to the US$1,060 price level," he said.