Gold to hit $1350 in 2010

Published on February 03, 2010 at 17:00

PERTH (Commodity Online): Gold price may go up to $1,350 per ounce in 2010. This opinion came from none other than Newmont Mining Corporation President Richard O'Brien.

"We will see continued support for the gold price," O'Brien said at the official opening of the company's Boddington gold mine near Perth. "Gold is a safe currency. No country can dilute the value of gold."

The $3 billion Boddington gold mine is set to surpass Kalgoorlie's famous Super Pit as Australia's largest gold mine. 

The price of gold could increase from current levels of around $1,100 an ounce to as much as $1,350 an ounce by the end of this year, O'Brien said.

Meanwhile, Newmont Gold Ghana, a subsidiary of Denver-based Newmont Mining Corporation will begin mining at its Akyem mine in Ghana by the end of 2013.

The Akyem mine which is located in the Birim North District of the Eastern region of Ghana is said to have a measured and indicated reserve of 7.7-million ounces of gold.

Newmont Gold is one of the world's largest mining companies, reputed for its very high industry practices and good corporate social responsibility.

Source: http://www.commodityonline.com/news/Gold-to-hit-$1350-in-2010-Newmont-25362-3-1.html

Gold to Hit $1350-1400 by late Spring-John Embry-Mineweb

Author: Geoff Candy

Posted:  Wednesday , 03 Feb 2010

GRONINGEN -

Gold should continue to consolidate over the next few weeks but, the next big move is likely to be up.

This is the view of Sprott Asset Management's chief investment strategist John Embry, who says he is looking for the price of the yellow metal to hit around $1,350 to $1,400 by late spring.

Speaking on the inaugural Mineweb Gold Weekly Podcast, Embry says the recent downward trend seen in the gold price is nothing more than a healthy correction.

"Gold had a 300 dollar plus run in US dollars from July into the early part of December and it has come under heavy pressure subsequently. It certainly has engendered immense bearishness amongst the commentators which is actually good from my perspective. I think the fundamentals are undisturbed and as a result it is setting up for another strong buy."

Asked about the link between gold and the US dollar, especially the recent strengthening of the dollar against the euro, Embry, says, while there is often a very clear link, the problems in the US and, by extension, the US dollar, are everywhere - especially given the huge budget deficit it is sitting with - so "the idea that one should run away from gold and into the US dollar because it is strengthening against the euro and several other currencies to me is actually preposterous.

"The idea that the US dollar is a safe haven today is flat out wrong," he added, "and that is going to be one of the major factors that are going to change the perceptions in the gold market going forward."

Another reason for Embry's conviction about bullion's next move, is the increasing role gold will play as a protection against monetary debasement.

"I think a lot of the world's wealth is figuring out that we have little choice given the debt problems in the world and the resultant unlimited creation of money and so I think there is a solid investment bid in the market for gold."

He adds, that concerns that have been raised about the possible impact the jewellery market is likely to have on the long term rise of gold because, he says, "all great bull markets in precious metals come from their reestablishment as money."

Source: http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=97226&sn=Detail&pid=1