The new year has brought a shot of good fortune for Kalgoorlie-Boulder’s famous gold industry, with a climb in the Australian dollar gold price to more than $1800 an ounce providing a festive boost for mining companies and prospectors.

Spot gold prices climbed to 30-month highs after Christmas and were trading around $1808 an ounce yesterday according to commodity trader Kitco, more than $100 an ounce higher than two months ago.

The last time the price of gold in Australia touched similar levels was in mid-2016, when the outcome of the Brexit vote in the UK drove gold prices up on fears of economic uncertainty.

Natural Gold Nuggets and Jewellery Owner Richard Mancuso said he had noticed an increase in visitors passing through his CBD shopfront in recent weeks.

“We’ve had an upturn, we do generally anyway at the start of January, that’s tied in with the holidays and tourism,” he said.

“But the upturn I’ve noticed is more with locals and that’s to do with the gold price going up.

“It’s definitely brought more people who go prospecting every now and then and some of the people that wouldn’t be out as much are definitely getting an incentive.”

According to Mr Mancuso, even boiling temperatures across the Goldfields this summer failed to deter many gold hunters.

“People try and find a way any time of the year to go out if they really want to and if it’s worthwhile and the gold price is definitely making it worthwhile,” he said.

Demand for gold is primarily driven by its status as a safe-haven commodity, a store of wealth that hedges against weakness in economic growth and political instability.

Argonaut Metals and Mining Research Analyst James Wilson said a falling Australian to US dollar exchange rate was also working in the favour of Australian gold miners.

“That could potentially come back further and there are other projections from other outfits that do suggest the Aussie dollar could go lower than where we are now,” he said.

The climbing gold price has brought recent joy for investors in Goldfields miners Northern Star Resources, Saracen Mineral Holdings, St Barbara, Regis Resources and Evolution Mining.

Mr Wilson said higher gold prices mean even more for smaller gold miners with tighter margins.

“You can imagine Ramelius Resources, which is producing at (a cost of) $1200 an ounce with $400-500 an ounce margins, if you increase that by $50-100 an ounce you’re increasing (the margin) by 25 per cent, their income goes up materially,” he said.

“For the little guys, for the higher cost, smaller producers it makes a big difference.”

Image: Natural Gold Nuggets and Jewellery Owner Richard Mancuso, Kalgoorlie Miner.