JOHANNESBURG (miningweekly.com) – Gold experienced a “strong and fairly steadily rising” third quarter, with the price having increased by $40/oz, or 3.2%, in dollar terms, the SA Bullion Gold Report shows.
A one-year analysis indicated a 2.9% contraction in the gold price, while the three-year growth analysis showed a steady performance of 3%, as did the ten-year analysis, with growth at 5.6%.
“The five-year performance figures [of a 6.2% contraction] make for grim reading, as the starting point, at September 30, 2012, was the high point before the huge washout of the financial crisis-inspired boom-and-bust in the gold price,” the report, which was released on Monday, noted.
In rand terms, the gold price accelerated by 7.4% in the third quarter, mostly as a result of the 4% depreciation of the rand during the quarter.
“Bumpiness in the rand and in dollar gold is highly evident in the one-, three- and five-year measurement terms,” the SA Bullion Gold report said.
Over one year, gold contracted by 4.8% in rand terms; however, the “most instructional” longer periods of three and five years show growth of 8.1% and 3.4% respectively. The ten-year compound yearly returns were recorded at 13%.
However, the report indicated that the rand was “working off the gains” achieved against the dollar in the last year.
The gold price ended the third quarter at $1 283.35/oz in dollar terms and at R17 363.72/oz in rand terms.