Gold Price Dips Amid Dollar Strength, Record Mine Production
The gold price declined on Friday, falling 1.6% to $4,037.86 an ounce as the dollar regained strength. This marks a setback for gold after its post-Fed bounce on Thursday.
Despite this decline, gold is still on track for its first monthly gain since February and has not yet recovered from its year-long slump, down 6.5% so far in 2026.
The World Gold Council reported that global mine production reached a record 966 tonnes in the second quarter, up 2% from last year's output. However, industry all-in sustaining costs hit a new high of $1,785 an ounce in Q1, indicating that rising gold prices can lead to increased expenses for miners.
The WGC also noted that central banks were significant buyers in the second quarter, with net purchases totaling 289 tonnes. This is a record high for a second quarter and represents a fivefold increase from last year's figure of 57 tonnes.