Oz benefits from declining gold prices

AUSTRALIAN gold mining stocks have become a safe harbour in a falling price environment, with shrewd investors taking advantage of the weak Australian dollar.
Oz benefits from declining gold prices Oz benefits from declining gold prices Oz benefits from declining gold prices Oz benefits from declining gold prices Oz benefits from declining gold prices

According to Bloomberg the currency is also helping local producers increase their margins and suppliers benefit from gold sales in US dollars while costs and profits are denominated in Australian dollars.

As spot prices for the precious metal decreased 16% last year, in Australian dollar terms it rose 8%.

Outlook for copper continues to fall as Goldman Sachs anticipates a 15% drop in prices by the end of the year.

A glut is having an adverse effect on raw metal markets, with the London Metal Exchange registering a 92% increase in inventories.

Copper futures for September delivery fell 1.8% to close at $US2.38 ($A3.24) a pound New York's Commodity Exchange.

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