Gold Price Could Rise to $US2200 an Ounce By 2013

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AngloGold Ashanti leader Mark Cutifani stated there was a massive upside towards the existing gold value of about $US1600 an ounce. He stated the current run-up within the gold price tag was not a bubble plus the latest price tag barely covered production charges for a lot of miners.

"For me, the threat continues to be for the upside," Mr Cutifani informed the Commonwealth Company Forum in Perth yesterday ahead with the CHOGM forum later this week.

Gold Prices

"Within the subsequent two many years, I feel it could conveniently touch $US2200 an ounce around the basis that input inflation continues to be substantial and ... the globe will see a great deal of uncertainty more than the subsequent couple of many years," he stated. "In these scenarios, gold tends to accomplish pretty effectively."

Mr Cutifani stated gold mining corporations had been struggling with skyrocketing production expenditures, which have been set to carry on increasing.

"It fees nearly $US1200 an ounce now to create an ounce of gold," he stated. "At about $US1600 an ounce, the bulk in the sector continues to be struggling to recover its weighted common price of capital, so I do not see the price tag at present as a bubble."