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Updated 02:24 14/05/21

Potential drivers for the gold price in 2016

By Duncan Richardson, News Editor

06 Jan 2016

Gold output decline as miners struggle to put new mines into operation. As output declines, 2015 may prove to be the year gold production peaked. Declining supply eventually leads to higher prices.

Tensions in the Middle East continue to deteriorate especially in Syria and Iraq. This could potentially drive the gold price higher as investors seek a safe haven.

Physical demand for bars and coins continues to grow, pushing the gold price higher. Like in 2015 the world’s largest mints could run dry as retail demand spikes.

The dollar peaks and then falls against other major currencies such as the yen, euro and pound, pushing the gold price up in U.S dollars. As the U.S. economy falls into recession the Fed lowers interest rates and starts another round of quantitative easing.

Could 2016 be the year the global economy unravels?

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