Fitch Solutions, Inc. Predicts Rising Trend in Global Gold Prices

SEATTLE (Scrap Monster): A recent research report published by Fitch Solutions foresees continuation of growth in gold prices over the next four years. The gold prices are likely to average at around $1,400 per Oz by 2022, 10% higher when compared with the 2018 average price of $1,275 per Oz. Also, higher gold prices may lead to greater mine investment, especially by junior miners.

According to Fitch report, the global gold production is likely to witness 2.6% growth per annum, rising from levels of 104 Moz during the current year to 115 Moz by 2022. The Russian gold production will rise by 4% in 2018. The stream of projects that are due to come online will result in continued growth in Russian gold production in the longer term. For instance, Polyus Gold expects its Natalka mines to be fully operational by the end of the current year. Australia will also emerge as the key driver of growth. Meantime, the report forecasts steady gold production growth in the U.S. from 8.0 Moz in 2018 to 8.6 Moz by 2022.

On the other hand, declining ore grades, tough environmental standards and investment by miners in overseas assets are likely to impact Chinese gold production. Over the forthcoming decade, Fitch expects Chinese gold production to stagnate, growing at a marginal rate of 0.2% per annum. However, the country will continue to remain as the world’s largest producer of gold ore.