Gold has pushed above US$4,100 an ounce as investors move back into defensive assets following a sharp reversal across global equity markets.
Spot gold was trading around US$4,105 early Friday, up more than 1%, as falling technology stocks and renewed market volatility lifted demand for traditional safe havens.
The move follows a strong week for Australian gold producers and explorers, which have benefited from both elevated bullion prices and a relatively soft Australian dollar.
A weaker local currency can magnify returns for domestic producers because gold is priced globally in US dollars while much of their operating expenditure is incurred in Australian dollars.
That has kept margins across parts of the Australian gold sector historically strong.
The latest rise is also occurring as investors reassess the global interest-rate outlook and geopolitical risk.
For ASX investors, attention is likely to remain on established producers as well as smaller developers whose project economics improve substantially at gold prices above US$4,000.
The next test is whether bullion can sustain its move above US$4,100 as volatility spreads through equities and cryptocurrencies.
