Gold is shining again after four months of consecutive decline

This photo taken on Monday Jan. 22, 2020 shows a gold miner holding gold in Kidal, Mali.South Africa’s gold production glistened in December after four consecutive months of decline, Statistics SA said yesterday. (AP Photo/Baba Ahmed)
JOHANNESBURG – South Africa’s gold production glistened in December after four consecutive months of decline, Statistics SA said yesterday.

StatsSA said that gold production volumes had jumped 24.9 percent in December, lifting overall mining production by 1.8 percent year-on-year compared with -1percent in November 2019 and -2.1 percent in October.

Gold production was up from a revised 4.5percent in November, and -1.4percent in October as the gold price reached multi-year peaks on the trade wars between China and the US.

Investec economist Lara Hodes said safe-haven buying, amidst a global environment marred by trade and geopolitical uncertainty saw the gold price reaching more than $1520 an ounce at the end of last year.

Hodes said looking forward demand for the metal could continue. “Specifically, while China and US’s phase-one trade deal in January did support an increase in confidence, with risk-off sentiment receding somewhat, the subsequent outbreak of novel coronavirus has reignited fears of a global growth and trade fallout,” said Hodes.

Source: iol.co.za