The price of the precious metal has already risen to the highest point in history due to increased demand. However, despite the recovery in demand and prices, the gold mining sector is going to face a recession during the Corona period. GlobalData, a UK-based consultancy firm, has forecast that global gold production could fall by 1.8 per cent this year due to the Corona epidemic. This potential downturn in the extraction sector in the face of increased demand could further accelerate the current recovery in gold prices in the coming days. The price of the precious metal may remain strong in the long run. News Reuters and Mining.com.

According to a recent report by GlobalData, the global gold mining sector was in deep crisis in the second quarter of this year (April-June) due to the spread of corona virus and lockdown in the country. At that time the global lifting of the precious metal stood at a total of 1.4 million ounces. In the same quarter of 2019, 2.9 million ounces of gold was mined worldwide. As such, the extraction of the precious metal worldwide has decreased by 1.5 million ounces in one year.

At the end of the year, global extraction of the precious metal is expected to decline by 1.8 percent compared to 2019. Due to the lockdown, by the second quarter of this year, the companies involved in this industry were forced to limit the mining activities in the mines of different countries including South Africa. World-renowned companies such as Newmont, Barrick Gold, and Anglo Gold reduce gold extraction in mines to avoid virus infection. Workers are sent on leave.

In the first half of this year (January-June), Anglogold's gold extraction from mines in South Africa alone fell by 73,000 ounces due to coronary infections and lockdowns. At the same time, the combined extraction of the precious metal from the mines under the company has decreased by 75,000 ounces. This situation has led to a slowdown in the global extraction of the precious metal. Which is expected to reduce the overall global gold extraction by the end of the year.

Since the beginning of 2020, with the spread of the Corona epidemic around the world, the price of gold in the international market has risen. The weak position of the currency and the stock market has boosted investors' interest in gold. Considering it relatively safe, they have invested extra in the gold market. Due to this, the price of gold was on the rise in the international market.

In August, the price of gold per ounce in the US market exceeded the milestone of 2,000. Never before in history has gold been sold at such a high price. The price of the precious metal has risen to the highest level in history.