Commodities
Gold Price Recovery: Supply Constraint Looms as Metal Nears Crucial Test
Gold prices have recovered significantly after falling to around $4,000 an ounce in July. The metal currently trades at $4,380.40 per ounce, up 8.18% over two weeks.
Jean-Marie Messier's successor, Jeff Currie, expects gold to eventually reach $10,000 an ounce. He argues that years of weak mining investment have left producers struggling to expand supply quickly.
The current supply constraint is a major factor in Currie's forecast. Capital spending by the top 20 mining companies remains about 40% below its 2012 peak, according to research cited alongside his commodity outlook.