Gold prices in the United States continued to squirm within a modest range, as there is growing pessimism with the country because of the latest report from the New York Federal Reserve.
The regional central bank within New York released a statement saying that the Empire State manufacturing survey declined during the month of December. The figures from the survey fell down to a reading of 10.9 down from the reading 23.3 during the month of November. Economists had been expecting a result of some 20.1 percent.
Gold prices in the global market are seeing some buying pressure currently as the dollar has slightly weakened. However, the reaction of gold prices to this latest economic report has suggested that economic data isn’t significantly impacting the prices as of yet. The precious metal is setting prices based on buying pressure and demand, and not on the economic data coming in from other parts of the country.
Gold futures for the month of February were trading today at $1,244 an ounce. The prices were up by 0.21 percent during the day of trading.
Global Gold Mining Expected to Remain Stable in 2019
One analytical firm studying global mining trends from across the world believes that mining during the year 2019 will remain stable. Analytical firms have been steadfast over the predictions for the upcoming year, with some predicting an increase of one and a half percent, and others predicting a decrease of the same percentage.
The GFMS team currently at Refinitiv has projected that production of gold in 2019 will fall down to 3.265.5 tonnes from the projected 3,281.7 in the year 2018.
“On balance, we think it will contract by one-half percent,” said analyst Johann Wiebe. “There’s not going to be any major mine closures,” Wiebe said. “There’s going to be a couple of instances where we have lower grades having an effect on production.”
“There are some ongoing issues in South America, but it’s been that way for a while,” Wiebe said. “In that sense, there’s not going to be anything new. There might be some disruptions but nothing major in terms of significant mine production being put off line.”
“The Amulsar project in Armenia is expected to add several additional tonnes to global output in 2019. However, output will ease in other parts of Asia due to lower grades,” Wiebe explained.
“Output is expected to ease in North America, with lower production in Mexico and the U.S. but with this partly offset by the opening of new gold mines in Canada, including the first production from Agnico Eagle Mines Ltds.’s Amaruq mine,” Wiebe reported.
Wiebe mentioned that there are chances that unrest and political uncertainty could affect the production of gold in South American countries, in particular Argentina. We saw in October that Chile’s government ordered Barrick Gold Corp. to close the Pascua-Lama project in the country. Mine depletion is another issue that can push production down as well.