Low gold price hits world’s largest producer

The world’s largest gold producer, Barrick Gold has just announced an $11.54 billion impairment and has cut its gold reserves by 26% due to the gold price making it unfeasible to mine.  Like most producers it has had to cut its costs with the 2013 price plunge but has stated costs will rise again in 2014 making more mines unfeasible at current prices.  Barrick of course are not alone and in any free market, when demand is as strong as it currently is for gold this would inevitably see prices of the commodity rise.