The quantum of gold supply dropped seven per cent in the December 2015 quarter owing to a four per cent fall in global mine output, according to GFMS Thomson Reuters’ Gold Survey: Q4 2015 Review and Outlook, released on Wednesday.
This is the largest quarterly reduction since 2008 and an all-time high for fourth quarter demand. Producers and mines that hedge (selling future production when they see prices falling) have started de-hedging (buying back their forward sales as they expect prices to recover).
