FXStreet (Mumbai) – As FT reports, Thomson Reuters’ GFMS metals research team noted its latest report that Global gold production is expected to fall 3% this year. That would end a seven-year streak of rising gold supplies, which peaked in 2015 at 3,155 tonnes.
The decline in production is expected due to the fall in the gold price, which has made miners less profitable, leading them to make lower investments in new gold projects. Gold dropped more than 40% from its highs in 2011.
The FT quotes Ross Strachan, a precious metals demand manager at GFMS, who said the expected output fall this year would occur “as the contribution from projects that had been commissioned in previous years fades and the pipeline for new projects is limited given the current stressed financial climate.”
(Market News Provided by FXstreet)