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Thursday, 12th March 2009 (1536 views)

The price of gold is set to soar to $1,200 (£871) per ounce, it has been predicted.

Chief executive of Newmont Mining Richard O'Brien told Global Mining and Steel Summit he would be "surprised" to see the commodity trading at anything less than $900 per ounce over the next few years and anticipated the upper limit to be $300 higher, Reuters reports.

He commented: "I do think we're in a trading range of $900 to $1,100 or $1,200 over the next several years."

Speaking about his own company's performance, Mr O'Brien said Newmont's Boddington Mine in Australia should produce between 300,000 and 500,000 ounces of gold this year, with the site on course to account for a fifth of the firm's production by some point in 2010.

Last month Newmont announced a 50 per cent increase in adjusted net income at $905 million, following record annual revenues of $6.2 billion.

 

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