Gold News

Barrick chief: Gold Prices 'could reach $2,000 per oz'

The head of the world's largest gold mining company indicated today (March 9th) that he believes it is possible for Gold Prices to head above the $2,000 per ounce mark, the Financial Times reports.

The yellow metal has increased gradually over the past few months as investors look for a safe haven from the economic turmoil and suspicions over central bank Gold Bullion hoarding persist.

Now Peter Munk, founder and chairman of Barrick Gold, has explained that interest in gold is higher than ever before and that "a feeling of insecurity" could push it to new highs.

He told the newspaper: "Let's say a small percentage of the world's central banks - or simply the United Arab Emirates, by itself - do not believe President [Barack] Obama's pledge that he will halve the US deficit by the end of his first term.

"They shift some of their dollar reserves into gold. It would not take many decisions of this kind to push the price above $2,000 per ounce."

Mr. Munk's views were seemingly backed up by 31 traders, investors and analysts last week in a survey conducted by Bloomberg.

The news provider found that a majority (20) of the industry figures - based from Tokyo to Chicago - displayed bullish sentiments towards gold, while four were neutral and just seven were bearish.

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