StatsSA said that gold production volumes had jumped 24.9 percent in December, lifting overall mining production by 1.8 percent year-on-year compared with -1percent in November 2019 and -2.1 percent in October.
Gold production was up from a revised 4.5percent in November, and -1.4percent in October as the gold price reached multi-year peaks on the trade wars between China and the US.
Investec economist Lara Hodes said safe-haven buying, amidst a global environment marred by trade and geopolitical uncertainty saw the gold price reaching more than $1520 an ounce at the end of last year.
Hodes said looking forward demand for the metal could continue. “Specifically, while China and US’s phase-one trade deal in January did support an increase in confidence, with risk-off sentiment receding somewhat, the subsequent outbreak of novel coronavirus has reignited fears of a global growth and trade fallout,” said Hodes.