Having broken through a $US3300-per-ounce record in 2025, what’s next for gold?
A 25 per cent year-to-date rally has seen gold reach Saxo’s annual target of $US3300 per ounce well ahead of schedule.
“Gold has been on a tear since Q4 (fourth quarter) 2022 when a triple bottom around $US1620 signalled the confirmation of a solid price floor following three years of sideways action,” Saxo head of commodity strategy Ole Hansen said.
“Unlike sovereign bonds – which can get tangled up in politics – or currencies, which shift with trade ties and alliances, gold and other precious metals are politically neutral.
“They’re recognised everywhere and aren’t tied to any one country’s credit rating.
“That’s a big part of why investors – whether private, institutional, or central banks – keep turning to gold, even at these record levels.”
Australian investors and producers alike are benefiting from the rally.
Genesis Minerals, for example, delivered its highest-ever quarterly gold production in the March 2025 quarter, producing 59,767 ounces.
The company also reported a $110.9 million increase in cash and equivalents, rising to $348.4 million by quarter’s end.
“We are meeting or exceeding all our key targets today while laying the foundations for strong, rapid and reliable growth tomorrow,” Genesis managing director Raleigh Finlayson said.
A key highlight for the company was the early restart and ramp-up of the Laverton mill, which processed 784,000 tonnes – exceeding its three-million-tonne-per-annum nameplate capacity.
“When combined with the strong reserves growth and the advances being made towards development of the Tower Hill project, we have the flexibility and capacity to accelerate our push to ‘ASPIRE 400’,” Finlayson said.
Looking ahead, Saxo has revised its 2025 gold forecast to $US3500 per ounce, citing further US rate cuts and central bank demand.
With Genesis targeting up to 210,000 ounces of gold production in the 2024–25 financial year at an AISC of $2200–2400 per ounce, the strong gold price environment could further boost returns and fuel the company’s growth ambitions.
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