Australian gold miners are set for a prosperous 2021 as the high price of the yellow metal boosts profits, encouraging a search for resources that now looks far more promising than a year or two ago.
Gold hit a record $2,067 per ounce in August. While the price has since eased, it has stayed above $1,800 as investors stick to the safe-haven asset amid the coronavirus pandemic and the ensuing global economic downturn. The weak U.S. dollar and low global interest rates are also helping the gold price by minimizing the downsides of investing in the metal.
Large gold producers and so-called junior explorers have responded by rushing to capital markets, seeking funds to restart shuttered mines or explore and develop new projects.
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