Stronger gold price recorded in first half

The first half of 1994 was a period of consolidation in the international gold market, in which players adjusted to a higher price range, according to Gold 1994 — Update I, compiled by Gold Fields Mineral Services of London, England.

The London afternoon fix averaged US$382.99 per oz. during the first half, up 6.4% from the same period last year and up 2.2% from the second-half average last year.

Mine production has continued to edge upwards while physical offtake has recovered from the low level of the second half of last year. Aggregate jewelry fabrication demand in the first half was higher than for the last six months of 1993, but 14% below that of the first half of 1993. Gold Fields says forward selling positions by producers have decreased, continuing the trend set in the second half of 1993. On the other hand, the first half of 1994 has seen significant disinvestment in North America and Europe, going against the trend of last year.

Also, official sector sales have declined, with central bank activity largely confined to lending and swapping gold.

In Canada, the rate of decline in gold production has slowed; during the first half, output was off by about 1% compared with the same period in 1993. The Gold Fields update is a supplement to the annual gold survey which the company publishes.