It is impossible to produce new XAUR, when the price lower than Production price. If you hold XAUR token, you are guaranteed that not a single new XAUR token will be coined when the market price is below Production price. And the production price can only grow.
Production price regulates supply of new XAUR tokens:
1. If the prices on exchanges are lower than production price, the supply of XAUR tokens is sufficient for current demand, as expressed by the market. The coinage of new xaurum through minting and mining will stop, and the mints and the Goldmine will have to buy from the market, until the price allows for inflation.
2. When the price on the exchange grows above Production price it is a sign that market is demanding new xaurum. In this case supply will be increased through coinage, the Xaurum commonwealth gold will increase, and new (higher) Production price will be set.
In short; XAURUM has built in mechanism that regulates supply of new tokens. The market will never be flooded with new XAUR being coined without a good reason - the market demand for new xaurum.
More simplified explanation can be found here.