The Australian share market is experiencing a gold fever not seen in over 15 years.
Gold stocks on the ASX have exploded higher, riding an unprecedented wave that has pushed the S&P/ASX All Ordinaries Gold Index to jaw-dropping gains of 81.9% year-to-date. The index hit a new record high this week, with bullion prices trading at $5,844 per ounce in Australian dollars.
For context, the benchmark ASX 200 has risen just 8.2% over the same period.
Major Miners Lead the Charge
Northern Star Resources (ASX: NST) surged 7% in Monday’s trading session, reaching $22.18 per share. The company reported net income up 110% in its latest results, driven by the 25% increase in gold prices throughout 2025.
With cash flow hitting record levels and production remaining stable, Northern Star has positioned itself as a standout performer in the sector.
Regis Resources (ASX: RRL) delivered the most substantial single-day gain among major producers, jumping 9.4% as investor appetite for gold exposure intensified. The company produced 373,000 ounces of gold in FY25 and ended the year with $517 million in cash and bullion after repaying $300 million in debt.
Newmont Corporation (ASX: NEM) shares climbed 5%, supported by strong gains on the NYSE and a bullish rating from UBS. The investment bank named Newmont as its preferred large-cap Australian gold stock, highlighting its production capacity and leverage to rising prices.
UBS analyst retained a buy rating with a price target of $140, implying 12% upside from current levels. The company’s dual-listing provides exposure to both Australian and North American markets.
Gold prices have surged 43% in 2025, the strongest annual performance in 15 years
What’s Driving the Rally?
Three powerful forces have combined to push gold stocks into record territory.
- First, the US Federal Reserve cut interest rates last week, with more reductions expected by year-end. Gold, which pays no yield, becomes more attractive in falling rate environments as the opportunity cost of holding it decreases.
- Second, geopolitical uncertainty remains elevated. The Russia-Ukraine conflict continues without resolution, while tensions in the Middle East and trade disputes fuel safe-haven demand. Central banks purchased over 650 tonnes of gold in 2024, with buying expected to continue at around 710 tonnes quarterly through 2025.
- Third, inflation concerns persist despite easing in some economies. Jim Wyckoff, senior analyst at Kitco Metals, noted: “There’s a continued flow of safe haven demand amid geopolitical matters that are still kind of wobbly.”
The gold price touched $5,768 per ounce in Australian dollars during September trading, breaking through the previous April high of $5,425.
Record Margins Fuel Producer Profits
At current exchange rates, Australian gold producers are generating exceptional returns. With production costs for most operations sitting between $2,000-$2,500 per ounce, miners are capturing margins exceeding $3,000 per ounce.
Evolution Mining reported one of the lowest all-in sustaining costs in the sector at $1,616 per ounce for the March quarter. The company produces 710,000 to 780,000 ounces annually across five Australian mines and one in Ontario, Canada.
Mid-tier operators including Perseus Mining and Genesis Minerals have also benefited substantially. Perseus gained 7.4% in Monday’s session, while smaller explorers with development-ready projects attracted renewed investor interest.
The strong pricing environment has accelerated development timelines across the sector. Multiple companies have brought forward feasibility studies and exploration programs to capitalise on favourable economics.
Silver Adds to the Precious Metals Rally
Silver prices reached their highest level in 14 years, climbing to $71.40 per ounce. The white metal gained 2.1% for the week, outpacing gold on a percentage basis.
Silver Price in Australia
Silver’s industrial applications in solar panels, electronics, and electric vehicles provide additional demand support beyond its role as a monetary metal. With the energy transition accelerating globally, silver faces tight supply conditions that could sustain elevated prices.
Josh Gilbert, market analyst at eToro, described gold as “one of the best-performing assets in 2025, enjoying its best year in 15 years.”
The performance builds on 2024’s 27% gain, creating a two-year rally that has reshaped portfolio allocations for institutional and retail investors alike.
Outlook: Can the Rally Continue?
Commonwealth Bank forecasts gold could reach $6,152 per ounce by the end of 2025, implying further upside for Australian producers.
The bank’s commodities strategist Vivek Dhar explained: “The re-ordering of safe-haven demand assets means that gold likely benefits more from risk events today than it did prior to 2025.”
However, some fund managers are turning cautious. Niv Dagan of Peak Asset Management warned that gold faces “key resistance” at current levels, suggesting investors may want to trim positions if the US dollar strengthens or inflation retreats.
Market participants will closely watch upcoming US employment data and inflation figures. Weaker economic readings could strengthen expectations for additional Fed rate cuts, potentially driving further gains in both bullion and mining stocks.
For now, Australian gold producers are capitalising on a rare confluence of favourable factors: record prices, strong production, and robust global demand.
The sector has delivered exceptional returns in 2025. Whether this golden run extends into 2026 depends on how central bank policies and geopolitical tensions evolve in the months ahead.
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FAQs
Q: Which Australian gold stocks have performed best in 2025?
A: Northern Star Resources, Regis Resources, and Newmont Corporation lead major producers. Northern Star gained 47.9% year-to-date, while Newmont rose 59.4%. The S&P/ASX All Ordinaries Gold Index climbed 81.9%.
Q: Why are gold prices reaching record highs?
A: Three factors drive the rally: Federal Reserve rate cuts making gold more attractive, geopolitical uncertainty increasing safe-haven demand, and central banks adding roughly 710 tonnes to reserves quarterly.
Q: What profit margins are Australian gold miners earning?
A: With gold at $5,672/oz and production costs around $2,000-$2,500/oz, miners capture margins exceeding $3,000 per ounce. Evolution Mining reports industry-leading costs at $1,616/oz.
Q: Will gold stocks continue rising?
A: Commonwealth Bank forecasts gold reaching $6,152/oz by year-end. However, analysts warn that US dollar strength or falling inflation could pressure prices. Upcoming economic data will provide direction.
Q: How do Australian gold stocks compare to the broader market?
A: The Gold Index surged 81.9% year-to-date versus 8.2% for the ASX 200, dramatically outperforming. Gold stocks benefit from both rising commodity prices and operational leverage.
