For the second year in a row, gold became one of the best performing assets.The gold price grew by 13.5% – its biggest annual gain since 2010 – and outperformed all major asset classes other than stocks.
However, gold demand remained under pressure in 2017, down 7%. The decline was driven by substantially lower retail investment demand and lagging ETFs. On the other hand, buying from the official sector recorded a substantial gain of 36% year-on-year.
Gold and silver mine output, on the other hand, continued to slow down due to substantial production losses seen in Indonesia and China.
For the Russian economy as a whole, 2017 proved to be a year of moderate improvement. The Russian Rouble strengthened, which had a negative impact on the mining sector, resulting in an increased dollar value of rouble-denominated operating costs across the board and lower Adjusted EBITDA margins.