Australia's Export Prices Surge in December 2024 Quarter on Increased Gold Demand

Export prices in Australia surged in the December quarter of 2024 as economic uncertainty hiked gold prices, while import prices slightly rose in the same period. The export price index jumped 3.6% this quarter, while the import price index added 0.2%, according to the Australian Bureau of Statistics' data published on Thursday. Gold and non-monetary export prices soared to an all-time high in October, edging up 9.7% during the quarter. The rise was attributed to investors' escalating demand for safe-haven assets amid uncertainty in the economy, added with central banks continuing to purchase gold. These assets were also a major factor in increasing Australia's import prices, as the prices of imported gold surged 10.3%, the ABS said. The export prices of metalliferous ores and metal scrap rose 7%, following the announcement of economic stimulus measures, with demand becoming stronger as Chinese steel mills stockpiled iron-ore. Stringent competition for liquefied natural gas or LNG cargo between Europe and Asia brought up global LNG spot prices, with gas export prices climbing 5.3%. The 3.3% drop in the export coal prices offset the export price rise as the weak Chinese property sector curtailed steel demand. However, China's demand for coal also increased during the winter months. Further into import prices, road vehicles were also a factor for the slight increase as their import prices rose 1.2%. However, the import prices of petroleum and telecommunications equipment fell 5.7% and 5.% during the quarter, the ABS said.