(Kitco News) – China’s H1 gold output dropped 10.18% to 152.75 tonnes, as production was affected by safety inspections following some coal mine accidents, the China Gold Association said on Tuesday. The eastern Shandong province reported two gold mine accidents in the first half, killing at least 16 people.
The Gold Association noted “All non-coal mines in the Shandong province had halted production since February and conducted safety production checks,” said the gold association, referring to the major reason for output declines. Gold consumption in the January-June period, meanwhile, picked up from a relatively low base a year earlier, up 69.21% to 547.05 tonnes, according to the association.
There were several holidays in the second quarter that boosted demand and gold jewellery consumption continued to rebound and became the major impetus for overall industry recovery, the association said Meanwhile, firm demand in new energy vehicles and electronics also fuelled stable growth for industrial-used gold, it said.
Looking at the gold daily chart, the price is in a firm consolidation zone. The area between $1755.20 and $1847.21/oz seems pretty firm. A breakout of either area would help market participants determine or forecast the future path of the yellow metal. The next resistance on the way IP is the blue zone and the previous wave high at $1916.53/oz. On the downside, the next major support zone is at the $1755.20/oz zone. The major consolidation support is the red zone at $1675.83/oz and if that was broken it could spell trouble for the precious metal.