Gold output lift defies price jitters
Production was 69.5 metric tonnes, compared to 67 tonnes in the previous three months, Melbourne-based Surbiton said in a statement. Output was 62 tonnes in the same period a year earlier, it said.
The gold price rose 7.6 per cent in the third quarter, the first such gain in a year after a slump into a bear market in April spurred sales of coins, jewellery and bars. Bullion tumbled 26 per cent this year amid speculation that the US Federal Reserve would scale back monthly bond-buying that helped prices cap a 12-year bull run in 2012.
"The higher production was due to the treatment of higher ore grades, and this in turn reduced cash costs," said Sandra Close, a director at Surbiton. "This is precisely what we expected, given the decline in gold prices in April and the lack of a significant recovery since then."
Gold for immediate delivery dropped to $US1225.55 an ounce on November 25, the lowest since July 8. The metal traded at $US1242.05 late on Friday, heading for a third straight monthly loss.
Fed minutes on November 20 signalled that policymakers expected an improving US economy to warrant trimming asset purchases in the coming months.
Gold rose 70 per cent from December 2008 to June 2011 as the bank bought debt to bolster the recovery.
China was the biggest producer in 2012, followed by Australia, according to the US Geological Survey.
Production in China rose 6.8 per cent to 307.8 tonnes in the first nine months of this year, with output in the September quarter of 115 tonnes, according to data from the China Gold Association.
Frequently Asked Questions about this Article…
Australia's gold output has increased due to the treatment of higher ore grades, which has helped reduce cash costs. This increase comes despite fluctuations in gold prices, as producers have managed to optimize their operations.
In the September quarter, Australia's gold production increased to 69.5 metric tonnes, up from 67 tonnes in the previous three months and 62 tonnes in the same period a year earlier.
The US Federal Reserve's actions, particularly the speculation about scaling back monthly bond-buying, contributed to a 26% drop in gold prices this year. This speculation affected the market as it signaled potential changes in economic policy.
Gold prices rose by 7.6% in the third quarter, marking the first gain in a year after a previous slump into a bear market in April. This rise was driven by increased sales of coins, jewelry, and bars.
In late November, the price of gold for immediate delivery dropped to $US1225.55 an ounce, which was the lowest since July 8. It later traded at $US1242.05, heading for a third straight monthly loss.
In 2012, China was the biggest gold producer, followed by Australia. China's production rose by 6.8% to 307.8 tonnes in the first nine months of the year, with a September quarter output of 115 tonnes.
Gold prices rose by 70% from December 2008 to June 2011 as the US Federal Reserve bought debt to bolster economic recovery. This action increased demand for gold as a safe-haven asset.
According to the Fed minutes from November 20, policymakers expect an improving US economy, which may warrant trimming asset purchases in the coming months. This expectation has implications for future gold prices and market dynamics.
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