Gold News

Gold price 'ready to attack' $750 level

One of the world's biggest gold exploration companies, Newmont Mining, has claimed that gold prices could rise this autumn to around $750 per ounce, on the back of jewelery consumption.

"There is very strong demand right now so we are setting ourselves up for an attack on the US$750 per ounce level in early fall this year," Newmont vice chairman Pierre Lassonde told Reuters.

Gold bullion prices today (September 6th) opened in London at above $680 per ounce, positive figures for recent weeks suggesting that the precious metal may be ready to surge further still.

Gold prices in fact hit a 26-year high of around $730 per ounce in May of last year, but then recoiled to well below the $700 mark.

Mr Lassonde was said to be confident that demand for gold generated by the jewelery market was set to grow further, consequently pushing up the price of gold.

China and India were identified as the greatest centers of increase in gold jewelery consumption, with reports from the World Gold Council this year confirming the Asian giants as key markets, alongside the Middle East and Turkey.

The World Gold Council also shed positive light on the prospects for gold, affirming that demand from these emerging markets had brought the gold jewelery market a record $14.5 billion in the second quarter of 2007.

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