Gold price likely to test record highs during 2020
SA’s lockdown forecast to drive down gold output in line with a global trend while investors scurry into the safe-haven metal
This year’s global gold supply will fall because of the Covid-19 pandemic, which has forced mine closures in major centres such as SA and Mexico. However, with prices forecast to test fresh highs, demand is expected to come under pressure.
SA and Mexico rank eighth and ninth in global gold production, respectively, with output of 118 tonnes and 111 tonnes. Metals Focus, a UK-based precious metals consultancy, said in its Gold Focus 2020 report that these two countries would be hardest hit by decisions by their governments to curtail the spread of the coronavirus.