Gold prices surge against the Australian dollar as tensions around the world worsen.

Gold pushed through to A$3,136 per ounce on Friday morning, setting a modern record in Australian dollar terms.

But there may be more to come with JP Morgan predicting the gold price to hit US$2,175/oz in 2024.

That may well turn out to be far too pessimistic given the state of the globe right now.

But, at today’s exchange rate, that JP Morgan figure would mean an Australian dollar price of A$3,443/oz.

Potential for further rises

Gold has been recovering from a recent pullback, stirred mainly by conflicts in the Middle East.

The $A needle hit A$3,086/oz in Wednesday trading in New York and needed only a nudge to push it up further the following session. As of midday Friday the gold price inched higher trading at A$3,133/oz.

The $A needle hit A$3,133/oz in Friday midday trade.

In greenback terms, gold has added US$162/oz over the past fortnight.

Now Islamic militants based in Lebanon are getting into frame of the conflict.

And, hovering above the Middle East, is the daunting prospect of Iran getting involved, a move that would be catastrophic both for Israel and the oil price.

Fears are growing, too, that the Middle East crisis — the worst since the Yom Kippur war 50 years ago — might encourage China to see this as an opportunity to strike at Taiwan while two whole US carrier groups are preoccupied in the eastern Mediterranean Sea.

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