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| Global Gold Production |
Global gold miners achieved record production levels while facing unprecedented operational expenses. According to the World Gold Council, second-quarter mine production rose 2 percent year on year to 966 tonnes, marking an all-time high for a June quarter. First-half output similarly climbed to 1,867 tonnes, driven by strong operational ramps in countries like Canada, Chile, Burkina Faso, and Ghana.
Industry all-in sustaining costs hit a record $1,785 an ounce in the first quarter, driven by higher royalties, corporate overheads, and early signs of energy price inflation. Independent analyst Ross Norman explains that gold struggles to regain meaningful momentum within its broader structural bull market due to lingering macroeconomic rate risks. Additionally, central banks continued aggressive accumulation, with the People's Bank of China and the National Bank of Poland significantly expanding their sovereign reserves.
Investment trends showed a distinct shift toward over-the-counter activity and Asian buyers, offsetting a 46 percent drop in Western exchange-traded fund holdings. Meanwhile, high retail prices severely impacted consumer jewellery demand, causing global volumes to fall 17 percent as buyers opted for lighter pieces. Consequently, the market remains heavily dependent on investment composition and institutional buying to dictate near-term price direction.
ScrapInsight Commentary
Record production costs and persistent macroeconomic rate risks continue to cap major bullion rallies despite robust central bank demand. Investors should monitor evolving recycling trends and exchange-traded fund flows as primary indicators for near-term price direction.
