Sprott Gold Market Outlook
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Report overview:
Support Remains in Place for the Gold Bull Market to Continue
• Gold has established a new trading range beyond the last decade’s average price
• Gold prices have reached new levels in multiple currencies
• Demand for physical gold has accelerated since equity markets peaked in February
• Investors shunning Treasuries for more exposure to precious metals
Impact of COVID-19 on Gold Miners
• Global gold mining activity has slowed from suspension mandates
• Delayed production could push 3-5% of 2020 output into 2021
• Unit operating costs for gold mined in 2020 likely to rise 2-5%
• Oil prices and currencies partially offset rising costs
• Reduced exploration activity threatens long-term supply
• March market dislocations and COVID-19 impact forces managements to re-focus on strategic vision