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"Overall, the Australian dollar gold price has continued to be attractive, thanks to the combination of the U.S. dollar gold price and favorable exchange rates," said Surbiton director Sandra Close. "This has encouraged the redevelopment of previously mined areas and the refurbishment of mothballed plants, thereby pushing Australian gold output higher," Close said. Australia produced a record 314 tonnes of gold in 1997, according to Close. A weaker Australian currency against the U.S. dollar lifted the local gold price to a high of A$1,856.48 an ounce in June, Reuters data showed. Prices have since recoiled to around A$1,623 an ounce - compared to about $1,250 in U.S. dollars - but still high enough to deliver strong profit margins for miners. Australia's gold miners' index on Friday reached its highest level since Nov. 11.