| Gold mines operating at higher costs represent a new potential source of supply in a market where prices will average $1,170 per ounce in 2015, Natixis said. Due to aggressive cost-cutting by gold producers, the all-in sustaining costs of production have fallen to somewhere around $960 per ounce, the research firm said in its latest report on Tuesday.
“That said there are still many mines operating at higher costs that could potentially need hedging,” it said. “This represents a potential source of supply in the market, which could help to accelerate any decline in prices.” The price of gold has been steadily declining since June, falling to a low near $1,180 in September before rebounding to $1,235.10/1,235.90 per ounce on Tuesday afternoon, effectively unchanged on Monday’s closing level...............................................Full Article: Source
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