Record high gold prices have enthused investors and miners alike in 2026, with the precious metal winning new converts globally. While volatility is expected to continue, ‘gold bugs’ are confident that more gains are ahead, encouraging Australian miners to boost exploration.
In January 2026, gold reached a record high of over US$5300 (approximately A$7500) an ounce, extending its rally driven by a weak US dollar, and a rush for safety from sovereign bonds and currencies.
The gold price subsequently retreated to around US$5000 in February amid diminishing expectations of a near-term cut to US interest rates following the nomination of the ‘hawkish’ Kevin Warsh as the next chair of the US Federal Reserve. Yet optimism remains that the yellow metal could see further price appreciation amid solid investment demand and continued central bank buying.
‘Gold has hit the headlines with the queue of investors buying gold bars at Martin Place in Sydney an indication of the strength of demand,’ says Peter Hwang, Managing Director of Queensland gold and copper explorer Superior Resources. ‘There’s no question that the yellow metal has gained favour, and we expect to see increased exploration activity amid this positive sentiment.’
Analysts are projecting higher prices based on continued demand from private investors and central banks, amid continuing global geopolitical tensions.
Investment bank UBS expects the gold price to reach US$6200 an ounce in 2026, with a potential upside of US$7200, while rival Deutsche has projected US$6000 this year. Goldman Sachs expects the price to reach US$5400 by year-end as private investors and emerging market central banks continue their diversification into the precious metal.
ANZ Research expects the gold price will reach US$5800 an ounce in the second quarter of 2026, saying gold ‘remains an insurance asset against a plethora of uncertainties’. ANZ points to concerns over the Federal Reserve’s independence, soaring debt levels, diversification away from the US dollar and rising Japanese bond yields as factors influencing increased gold demand.
‘Gold serves as a transitional asset, providing stability and diversification when conventional anchors are under pressure. This is why strategic allocations to gold remain relevant, at least until geopolitical stability is achieved, the United States’ structural fiscal problems are resolved, and the Federal Reserve’s credibility is restored. This is unlikely to materialise anytime soon,’ ANZ said in a 13 February report.
Global gold demand hit a new all-time high of 5002 tonnes in 2025, with US$555 billion invested in the precious metal, according to the World Gold Council’s Full Year 2025 ‘Gold Demand Trends’ report.
The increase was driven by rising investment demand, which reached 2175 tonnes, with the main markets of China and India recording significant gains, up 28 per cent and 17 per cent, respectively. Central bank demand also remained elevated at 863 tonnes, while total supply also reached a new record with mine production of 3672 tonnes.
The Australian Government’s Office of the Chief Economist is also bullish, stating in its December 2025 ‘Resources and Energy Quarterly’ that ‘further US interest rate cuts will support gold prices … as will ongoing concerns about the US fiscal outlook and persistent US inflation’.
Australia was the world’s third-largest gold producer in 2023, and the government forecaster projects gold production will increase by 16 per cent to 340 tonnes in fiscal 2026, rising to 369 tonnes in fiscal 2027 as new projects come online.
‘Additions of around 30 tonnes of production are expected in the next 5–10 years – from new mines or reactivations, which offset declining ores and end of life at some existing mines,’ it says.
Australia is expected to earn $69 billion from gold exports in fiscal 2026, rising to $72 billion in fiscal 2027, in line with increased production and high prices.
Rising gold prices and investment saw exploration spending rise by 37 per cent year-on-year to $431 million in the September quarter 2025, a record quarterly high.
New projects
Among new gold projects, Superior Resources has announced plans for a 3000-metre reverse circulation drilling program in the first quarter of 2026 (subject to weather conditions) at its Steam Engine gold project in Central Queensland, aiming to expand the resource.
‘Further resource growth will greatly enhance the cash flow potential and development options for the project, which may include a staged production pathway (for example, commencing with toll treatment before transitioning to a standalone processing operation) or progressing directly to a standalone processing operation,’ the company said in its 30 January quarterly activities report.
In Western Australia, the launch of Australia’s ‘next big gold mine’ – Northern Star’s $1.3-billion Hemi project – has been pushed back to the end of the decade amid uncertain timelines for government approvals, according to the Australian Financial Review (AFR). A final investment decision is expected by June 2027, with production to begin around 2030 ‘at the earliest’, the financial daily reported on 12 February.
In New South Wales, Regis Resources’s $1-billion McPhillamys mine could now potentially proceed with the company proposing a new design to overcome Indigenous objections, according to the AFR. In 2024, then Minister for the Environment the Hon. Tanya Plibersek blocked the mine’s approval over its proposed dam site, yet Regis is now dusting off plans to build a new mine with an estimated gold resource of 2.26 million ounces.
Australian gold miners are also active internationally. In February 2026, Theta Gold Mines announced a revised feasibility study for its TGME gold mine in South Africa, confirming a 13.1-year life of mine and positioning it as ‘a high-margin, long-life gold operation in one of the world’s premier gold regions’.
With the gold price hitting new highs in Australian dollar terms, more new gold projects are anticipated both in Australia and overseas.
‘The gold price has surged by around 150 per cent in three years – an unprecedented rise that has reaffirmed its position as the world’s reserve currency and ultimate inflation hedge. For Australian miners, the opportunity is enormous and we look forward to advancing our gold projects to help add to the nation’s surging production,’ Hwang adds.
