Gold soars past $4 100 as investors reap gains despite SA’s output decline

GOLD prices have continued their record-breaking rally, driven by sustained buying from central banks and exchange-traded funds (ETFs), even as South Africa's domestic gold output continues to shrink under rising production costs and regulatory pressures.

- TAWANDA KAROMBO-

SA'S GOLD production slumped by 3.6% year-on-year in August, marking the second consecutive monthly decline, but gold prices have rallied to levels around $4 141 per ounce despite a stronger dollar amid a looming trade war with China, a government shutdown in the US and global economic growth uncertainty.

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Data from StatsSA on Tuesday showed SA’s gold production slumping by 3.6% year-on-year in August, marking the second consecutive monthly decline following a 0.4% drop in the previous month.

However, gold prices have rallied to levels around $4 141 per ounce despite a stronger dollar amid a looming trade war with China, a government shutdown, in the US and global economic growth uncertainty.

John Meyer, an analyst with UK-based advisory firm SP Angel, said on Tuesday that gold prices have “pressed higher again, climbing past record highs on sustained buying from ETFs and central bank” buying.