At the moment we seem to be seeing gold doing a bit of a shuffle… but all will be good for gold as we go past this year says Newmont chief.
Australia looks likely to benefit from the higher gold prices on the back of a substantial recovery in production this year…. Thankfully P Costello won’t be in a position to bugger the industry again and Gordon brown is now little more than a joke so England won’t be selling their bullion at bargain. Our AUD might make things more interesting however and it is, for me at least, difficult to work out how a markedly stronger Australian dollar will affect individual compnaies and also the Gold ETFs.

Wealthy Chinese to fire up world gold price, says Richard O’Brien
Th World gold price has yet to peak and the steady emergence of a wealthy Chinese middle class will help underpin a move toward $US2000 per ounce over the next five years, said Richard O’Brien, chief executive officer of Newmont Mining yesterday.

Mr O’Brien said global gold demand and supply conditions are set to ensure the gold price remains robust over time, with entrenched weakness in the US dollar set to persist as Congress shows no sign of reining in the country’s budgetary woes.

“I’ve got to believe that the US dollar goes lower over time,” he said on the sidelines of the World Economic Forum on East Asia.

“I’m a firm believer that the gold price has not reached its peak, but it will remain volatile,” he added.

“Five years from now, $US2000 gold will probably be in reach,” Mr O’Brien said.

Next year, gold will trade in a narrow range of $US1500 to $US1600 per ounce, with the market focused on concerns about China’s ability to sustain its expansion, and the potential for a double-dip recession in the US economy, he added.

“That could be negative for gold,” but markets need to understand that whatever happens, the gold price will remain above $US1000 per ounce for the foreseeable future, he said.

“People need to get with the program,” he added.

Demand-side dynamics are set to remain strong while global gold supply tapers off in coming years as projects become more expensive to develop and government approvals are harder to get. Some central banks are also starting to buy gold again, he said.

Demand from both China and India for gold as both jewellery and as an investment is set to be strong, he said.