According to the preliminary data released by the US Geological Survey (USGS), the global production of gold mines was 3000 tons in 2021. This is slightly lower by only 1% compared to 2020 when global production was 3,030 tons.
Last year, China was the largest gold mining country.
The USGS said that the decline in gold production last year in Papua New Guinea and the US will more than compensate for the increase in production in China, Ghana, Indonesia, South Africa, and Tanzania.
China produced about 370 tons of gold in 2021, which was slightly more than in 2020 (365 tons) and so, it was named as the largest gold producing country.
Australia was the second-largest gold producing country with 330 tons, followed by the US (180 tons), and Canada (170 tons).
Meanwhile, gold's growth yesterday was directly related to the weakness of the US dollar.
The dollar index lost 0.63%.
Trading in New York resulted in gold's growth by 0.62%. This gain yesterday was almost exactly equal to the percentage decline in the US dollar, which indicated that neither the bullish nor bearish fraction could change the price in any direction.
Last week, the Fed announced that it will start normalizing interest rates this March. Analysts have varying forecasts about how many rate hikes the Fed will make this year. But it is very likely that the rate increase could be more than what was expected.
Market participants are also concerned with inflation, as Friday's report shows that the PCE index (the preferred inflation index used by the Federal Reserve) has risen to a 40-year high, as did the consumer price index last month. Currently, the PCE index, which excludes food and energy costs, has grown by 5.8%, which is almost 3 times higher than the Fed's 2% inflation target.
Since inflationary pressures could have had a strong impact on the US dollar and gold, Friday's lows could be the end of the most recent correction.
