Ever since hitting the highs in September 2011 gold has been on a downward spiral. Now with the price threatening to break $1,200/oz barrier. The question now is, where is the precious metal heading? Fig 1 below is the weekly chart of gold from 2010 to date.
Fig 1: 1-week Chart of XAUUSD
From the beginning of 2010 into 2011 the price on Gold was on an upward trajectory before peaking on the 5th of September 2011 at a price of $1920.66/oz. Afterward it began retreating and has since reached a low price of $1,179.50/oz on the 14th of June 2013.
This article attempts to look at the fundamental and technical aspects affecting the price of gold
The production cost of gold varies from company to company depending on the type of mining, the level of technology used and the part of the world where the mining takes place. Fig 2 below shows how the various standards used to measure the production cost of gold related to the actual price of gold.
Fig 2: Evolution of gold cost standard
In 2012, the senior gold companies worked with the World Gold Council to come up with a standard called the all-in sustaining costs (AISC) and has been widely …