In early morning trade today, the gold price did something that we're almost becoming accustomed to here in 2025.
Namely, it broke into new record high territory once more.
Just a few hours ago, the gold price reached US$3,976.62 per ounce. That same ounce is currently fetching US$3,974.09.
This sees the yellow metal up just over 50% since this time last year.
And, as you'd expect, it's been a boon for ASX gold stocks and the investors holding them.
How much of a boon?
Well, over the past 12 months, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) has rocketed 98.1%. For some perspective, the All Ordinaries Index (ASX: XAO) has gained 9.2% over this same period.
Bullion has most recently enjoyed an added boost from the uncertainties thrown up by the ongoing shutdown of the United States government.
For all of the past year, the gold price has been catching tailwinds from strong central bank buying and falling interest rates in major global economies. Gold, which pays no interest itself, tends to perform better in low and falling interest rate environments.
And let's not forget the yellow metal's haven status, which has seen ongoing demand amid our turbulent geopolitical times.
Surging gold price secures number two export medal
As Bloomberg reported, gold will overtake LNG in FY 2026 to become Australia's second most valuable export.
That's in part because, as the gold price has rocketed, LNG prices have come off the boil amid weaker global crude oil prices. The Department of Industry, Science and Resources forecasts a 17% year-on-year drop in LNG revenues in FY 2026 to $54 billion.
Iron ore remains king of the hill, with FY 2026 revenues in the range of $113 billion.
As for gold, FY 2026 export revenues are forecast to increase almost 28% year on year to $60 billion. That's almost double the revenues reported in FY 2024.
The Department of Industry, Science and Resources noted:
The main driver of upward revisions to export values in 2025–26 has been the extraordinary surge in US dollar gold prices. The renewed strength in gold prices comes as US interest rates cuts occur, which lowers the opportunity cost of holding gold, and worries rise over the US fiscal outlook and the rate of US inflation.
What are the experts saying?
Commenting on the soaring gold price and retrace in LNG prices in FY 2026, Tim Harcourt, chief economist at the Institute for Public Policy and Governance at the University of Technology Sydney, said (quoted by The Australian Financial Review):
There seems to be a flight to safety with gold – whenever there is shakiness in the financial system, people rely on it, and Australia is still a major gold exporter so that's going to help us.
In LNG, we've had it good for so long … that even with a slowing it's still pretty healthy. Despite all the big announcements about net zero and going to renewable energy, gas seems to be the stop gap for a very long time.
Minister for Resources and Northern Australia Madeleine King said, "The discovery of gold helped build this nation and gold mining is still creating wealth and jobs for our economy today."
And amid the record-breaking gold price, King noted that "gold and critical minerals [are] playing an increasingly important role in our export mix."
