Gold miner Newcrest Mining says the outlook for the precious metal remains positive, with production expected to continue to decline in the foreseeable future.
Newcrest chairman Don Mercer also told shareholders at the group's annual general meeting today that demand for copper was brighter due to heightened expectations of a global economic recovery, and particularly in China.
"The outlook for gold has been strong during the year in review and remains positive," he told the meeting in Melbourne.
"While demand for gold as a store of value has strengthened during the recent global uncertainties demand for jewellery has been relatively flat.
"Against that backdrop world gold production has also continued to decline and is expected to do so in the foreseeable future."
The spot price of gold is currently trading around $US1029.75 an ounce.
Meanwhile, the price of copper has improved after demand fell in line with the global economic downturn.
"But (it) has now resumed a generally positive outlook in the expectation of a global recovery, particularly in China," Mr Mercer said.
In the US overnight, the copper for December delivery on the New York Mercantile Exchange's COMEX division settled at $US2.9305 a pound.
Mr Mercer warned that the current strength of the Australian dollar was causing concern for exporters, including Newcrest, and will ensure that pressures on margins continue.
"As the Australian dollar gold price closes the gap to the US dollar gold price the company's Australian dollar sales revenues and earnings will be negatively impacted," he said.
"This highlights the need for careful management of the company's production costs costs and the extent of the challenge for Newcrest to remain a low cost producer."
AAP