gold may crack $us2000 price on demand in ch..

THE gold price could exceed $US2000 a troy ounce this year amid continued robust demand in fast-growing economies like India and China, AngloGold Ashanti chief executive Mark Cutifani said today.

Mr Cutifani expected the gold price, which settled at $US1685.60 an ounce overnight, to average between $US1700 and $US1800 in 2012.

"We could see it peak at well over $US2000 in my view, but it is going to move around a fair bit, I think, as news-flow from Europe, the US and other countries continues," he said.

Prices remain supported by strong buying in China, Mr Cutifani said. "With the increasing middle class in China, many Chinese are choosing gold as a way to store wealth, so I don't think that will change," he said.

Demand for gold jewellery in India remained "relatively strong", though it had weakened slightly recently due to talk of higher taxes on gold imports, he said.


The South Africa-based miner planned to spend around $US800m in Australia over the next two to three years on new projects and exploration, he said.

The Tropicana mine development in Western Australia was on track to meet its forecast start-up date of the fourth quarter of 2013, he added.

Cutifani said last week's military coup in West African nation Mali, which accounts for around 4 per cent of the company's gold production, hasn't affected operations there, which are still running as normal.

"We've had no disruptions," he said. "We are receiving fuel and other materials, so operations should continue - we don't expect that to change and, as I understand it, other mining companies are in the same position."

source:
http://www.theaustralian.com.au/business/mining-energy/gold-may-crack-us2000-price-on-demand-in-china-india/story-e6frg9df-1226311543673