Sri Lanka, Oct. 7 -- Australia said on Tuesday it expected gold to become its second most valuable resource export after iron ore this financial year, dislodging liquefied natural gas, as concerns over geopolitical instability fuel demand for the safe-haven metal.

Australia's gold exports are expected to rise by A$12 billion ($7.9 billion) to A$60 billion in the current financial year ending in June 2026, as the country exports more gold at higher prices, the department of industry said in its September quarterly report.

That would eclipse Australia's export earnings for LNG, which are expected to fall to A$54 billion this financial year, and to A$48 billion the following year, tracking lower oil prices.

A lower interest rate environme...