Gold production is Nordgold’s main business.
Therefore, the trends of the global gold market is of considerable importance to us.
The market price of gold is affected by demand and supply, which we consider in detail below. However, the top line is that the gold price increased by 10.3% to US$1,247/oz compared to US$1,130/oz in 2015. (Source: The London Bullion Market Association)
Nordgold does not have any gold hedging in place, and we therefore expect our realised gold price to remain close to the market price in 2017. Investment and speculation affect both the gold price and its consumption, unlike other metals, and add additional unpredictability to the trends in gold price forecasting.
Demand for gold comes from four sources
The supply of gold comprises mine production and gold recycling