A Recap of Major 2021 Gold Stories and What to Expect This Year

The performance of gold was less than expected last year after a record-breaking performance in 2020. The metal’s performance was heavily influenced by the hawkish stance the U.S. Federal Reserve held, which decreased the appeal of the metal and created a high interest rate environment.

A signal for economic recovery and the arrival of coronavirus vaccines also tilted the market toward high-risk investments, with the promise of high return on other assets attracting even more investors. This didn’t help the metal’s appeal, causing it to make its first annual loss in three years.

Despite gold’s slightly underwhelming performance, some advancements were made that could positively impact the gold market in 2022. For instance, at the start of last year, Kirkland Lake Gold and Agnico Eagle merged, creating a major gold firm with more than 45 million ounces of gold in reserves and a $24 billion market cap. Toward the end of 2021, Pretium Resources was also acquired by Newcrest in a $2.8 billion deal. These mergers may positively influence the gold sector in 2022.

With regard to future mines, Equinox Gold started construction at its $1.2 billion Greenstone project, which is expected to be one of the biggest gold mines in Canada, producing more than 400,000 yearly for its first five years in operation. Ascot Resources was also given permission to begin construction at its Premier gold project. Production is expected to begin by the first quarter of 2023.

Regarding production, the top gold miners globally saw a little more than 1% drop in gold production during the first half of last year. This decline was primarily caused by lower mill throughput and ore grades.

The presence of the coronavirus pandemic didn’t help matters, interrupting major operations. However, a study did find that lockdowns imposed to contain the virus didn’t impact emissions caused by gold mining operations.

Global Data, an analytics company, expects the output of gold in 2022 to recover by the second half of the year, which will boost the metal’s overall production for the year.

With regard to demand, the World Gold Council expects investors to seek out assets such as gold because the metal offers the liquidity and capital required during a market sell-off. Analysts also expect a gold rally to occur during the first half of this year, given the possibility of multiple rate hikes.

Gold’s outlook for this year’s first quarter is also positive, with mounting inflation pressures increasing the possibility of recovery for the precious metal, to the benefit of established sector players such as StraightUp Resources Inc. (CSE: ST) (OTCQB: STUPF).

NOTE TO INVESTORS: The latest news and updates relating to StraightUp Resources Inc. (CSE: ST) (OTCQB: STUPF) are available in the company’s newsroom at https://ibn.fm/STUPF

About MiningNewsWire 

MiningNewsWire (MNW) is a specialized communications platform focused on developments and opportunities in the global resources sector. The company provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to nearly 2 million followers, and (5) a full array of corporate communications solutions. As a multifaceted organization with an extensive team of contributing journalists and writers, MNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, MNW brings its clients unparalleled visibility, recognition and brand awareness. MNW is where news, content and information converge.

To receive SMS text alerts from MiningNewsWire, text “BigHole” to 21000 (U.S. Mobile Phones Only)

For more information, please visit https://www.MiningNewsWire.com

Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer

Los Angeles, California
310.299.1717 Office

MiningNewsWire is part of the InvestorBrandNetwork.


Select A Month

Contact us: (310) 299-1717