AngloGold sees gold price rise on demand
AngloGold Ashanti, the world’s third-largest gold miner, on Tuesday forecast gold prices—already at record highs—could rise by between $70-$100 an ounce annually over the next five years as demand from investors accelerates.
“You can add about $70 to $100 an ounce each year over the next five years,” AngloGold chief executive Mark Cutifani told a teleconference.
The forecast is slightly below other forecasts, including world number one gold producer Barrick Gold’s prediction of $1 500-plus next year.
Cutifani said fast-rising gold prices were outpacing increases in average global production costs now at around $950-$1 000 an ounce due to higher investment interest in both gold equities and direct investment in bullion via exchange-traded funds.
Spot gold hit an all-time high of $1 300 an ounce on Monday, extending a two-week rally on doubts of a global economic recovery soon.
Investors typically scoop up more gold when other investments, such as stocks and currencies look shaky.
The world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, stood at 1 300,521 tonnes as of September 24, just shy of the record 1 320,436 tonnes held on June 29. The price of gold has risen by 18% so far this year.
AngloGold shares have risen by more than 4%, compared with a 3,1% rise in Johannesburg’s blue-chip Top-40 index. - Reuters
