Citi sees Gold supply reduction in 2H'15

Citi Research notes the gold market is likely to experience stable supply for the remainder of the year, but the outlook is worsening. "Despite production increases attributed to mega mines such as Pueblo Viejo in the Dominican Republic and Canadian Malartic in Canada, lost production from mines, which shut down either due to reserve depletion or high operating costs, will gain momentum. The main theme for the latter half of 2H'15 will be that of widespread capacity closures as GFMS data suggest that an inflection point in 2015 will mark the start of global annual mine supply reduction through to 2017." Citi is bearish on the gold and silver sectors over the next three to six months.