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AngloGold Ashanti ups Gold Price forecast

AngloGold Ashanti has confirmed that it is increasing its Gold Price view on the back of the weakness it perceives in the US dollar.

The world's third-largest gold producer had previously expected the yellow metal to trade between $900 per ounce and $950 per ounce in the remainder of the year.

However, CEO Mark Cutifani revealed that this has now been amended to between $930 per ounce and $1,000 per ounce, while also noting that the company expects Gold Prices to move higher in 2010.

"We are voting with our feet in indicating we still think the gold price has some legs," he said in relation to the company's decision to remove a further 1.4 million ounces from its hedge book.

He added: "We think it could trade a lot closer to $1,000 next year and it will very much depend on how weak the US currency trades. I think it will be weaker, the real question is how much weaker."

Meanwhile, Bill O'Neill, a managing partner at New Jersey-based investment house LOGIC Advisors, has sounded an equally positive note for the gold price.

In an interview with Reuters, he also highlighted the role of the greenback - which has an inverse relationship with gold - as a major factor in the current strength of the yellow metal.

"There is new money coming into everything," he told the news provider.

"Stronger equities and commodities are reflecting that. Of course, the dollar continues to weaken and that is the driving force right now."

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