$2,000 Gold Likely Next Year, Says Barrick CEO
By jturbin | November 13, 2012 4:15 AM EST
The price of gold is likely to rise to a new record high above $2,000 an ounce in 2013, according to the head of the world’s largest gold mining company.
Jamie Sokalsky, CEO of Barrick Gold (ABX), stated on the sidelines of an industry conference on Monday that “We could see $2,000 and higher within the next year…the fundamentals for gold at still looking very positive.”
“If demand continues to rise, which we think it will through China buying more gold, more investment demand for gold, (and) central banks continuing buying more gold rather than selling as they used to, I feel quite comfortable predicting that gold prices will within the next year be at $2,000, perhaps higher,” Sokalsky added. “It’s going to be a demand-driven type of move.”
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When asked if slower economic growth in China could dim the prospects for the yellow metal, the Barrick CEO responded that “I don’t see anything other than a soft landing” for the Chinese economy.
The price of gold reached its current all-time record high of $1,923 per ounce on September 6th, 2011. Its highest level thus far in 2012 was $1,798, reached on October 1st.
Shares of ABX moved lower alongside the gold stocks sector on Monday, falling by $0.31, or 0.9%, to $35.76 in mid-day trading.