The world’s largest gold producer Barrick Gold is the only miner of 15 leading gold producers that suffered a drop in gold output in the first half of 2014, according to the latest global gold output analysis.
Fourteen mining companies will be producing gold at an annual output rate of one million ounces or above this year, according to reports. However, New York-listed Barrick Gold’s fall in product is significant in comparison.
Thriving African subsidiary
Barrick Gold subsidiary, African Barrick Gold (ABG) and independently listed entity, was a shining light in the corporations global mining operations.
ABG production increased by 13% in H1 2014 to 346 581 oz, when compared to the same period in 2013. ABG is Tanzania’s largest gold producer and one of the five largest gold producers in Africa.
Gold’s rise to two-week
The gold prices reached a two-week high on Thursday after concerns about the strong US dollar, which saw the commodity push to $1 233 per ounce – its fourth straight day of gains after falling to a 15-month low of US$1 183.46 per ounce on Monday.
The gains came after the United States Federal Reserve, in the minutes of its latest policy meeting, expressed concerns about the country’s strengthening currency and tepid economic growth overseas.
Asia driving demand
Physical gold’s status as a cultural icon in Asia means consumer demand is likely to continue thriving, according to reports.
Demand from buyers in India – the world’s second-largest consumer after China – is expected to peak in the last two weeks of this month during the Hindu ‘festival of lights’ or Diwali, which falls on October 23.
However, some analysts believe Asian buyers are holding out for even lower prices before returning to the gold market.