South African Gold Output Collapse Continues

Business Insider reported South Africa’s gold production continued in its decline, dropping a further 2.9% in May.

As quoted in the report:

South Africa’s gold output continues to collapse and fell a further 2.9% in May, according to data from Statistics South Africa released yesterday. The decline in gold production comes despite a 0.8% rise in total mining output in the same month.

Francisco Blanch, Head of Global Commodity & Multi-Asset Strategy Research Merrill Lynch, commented:

$2,000 an ounce is sort of the right number. We believe that ultimately the Fed will be forced to do quantitative easing. If it happens in September, as our economists expect, we will get a rally sooner in gold. If it happens after the election (in November), we will get the rally a little bit later; probably we will touch $2000 an ounce sometime next year.

Click here to read the full Business Insider report.