World Gold Update

Gold production has dropped by 0.9% of total output this year, which given the amount of pressure gold is under, is a serious reduction and can only put more upward pressure on the gold price. 
Inputs from scrap gold are also seriously down, since most of the scrap gols sotred in peoples homes has already been sold off to the multitude of 'Cash for Gold' companies that sprung up like mushrooms in 2008-9. Additionally, those who do still have scrap gold left expect the price to rise, so they are hanging on to it for the moment.
Australia has announced that there will be further reductions in it's future gold output, after already revising the figure for this year downwards by 5%. This has some people worried that Australia will not just be able to use it's mineral wealth to support it anymore, which would mean serious trouble for the Australian economy.
China has announed that it is going to double its already significant Gold reserves and in addition, start a Silver reserve for the first time. However, their next five year plan calls for expansion of the service industry, not infrastructure, which means that they will be buying less mineral resources from Australia. This could have a serious impact on Australia's economy.
Canada is one of the few remaining countries with excess gold output, but there will be a delay of two years before extra capacity comes on
stream
The USA is currently in election fever, which means that everything will behave differently until they have picked one of thier 2 choices for emperor (oh, sorry, I mean president =) 
The election is likely to have a destabilising effect on the US Dollar, which would also cause more upward pressure on gold prices.
The Big question in the short term for the USA however is QE3, as in, will they, or wont they? If the announcement for more QE is made, it will be definitely made in december, since October is regarded as too close to the election to patch things up incase there is negative fallout from more QE.
The next probable announcement for QE is on the 13th of September when the FOMC next meets.
QE in the USA will weaken the dollar, because of higher inflation expectations and hence push gold higher as well.
Even allusion to QE3 by the Fed is causing small market spikes because people are so desperate.
The big question for europe is whether the ECB is going to begin it's bond buying program again.
Further bond buying by the ECB will be good for the Euro, hence good for gold. It will also remove turmoil in the bond markets (at least temporarily)

In addition, Silver mining output is expected to rise by 1-2% this year.

As an ending piece, i leave you with this fascinating chart of the World's Recorded Gold Reserves. Unfortunately, the picture is not dated, so I do not know what year it is from exactly, but it probably represents a reasonably accurate picture.

Christopher Carrion.