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$US1000/oz next barrier for gold

Rebecca Lawson
Monday, November 05, 2007

CLAIMS by Newmont vice-chairman Pierre Lassonde in August that the gold price could hit $US1000 per ounce may be ringing a little louder, with the precious metal smashing through the $800/oz mark and set to challenge its all-time high this year.




The spot price of gold rose 2.2% to close at $806.60 on Friday night after reaching an intraday high of $807.70/oz, while three-month delivery on COMEX firmed 1.8% to close at $808.50/oz after reaching an intraday high of $810.70/oz.

It's been a one way ride for the precious metal since it broke through the $700/oz barrier in September, with the ups far outweighing the downs as the price continued to set new 27-year highs.

A spiralling United States dollar, an interest rate cut by the US Federal Reserve and a record-breaking oil price have all contributed to the rise and rise of gold, with analysts touting that gold's all-time high of $US873/oz could be within reach this year.

Meanwhile other analysts are far more bullish over the gold price, with some saying it could reach $1000/oz in the near-term, a possibility first raised by Lassonde in August at this year's Diggers & Dealers conference in Kalgoorlie.

``Everyone is talking about $1000. There's potential for that next year. The dollar's fallen out of bed again today. South African miners may strike. All lights are flashing," GFMS executive chairman Philp Klapwijk told Bloomberg.

Most gold plays on the Australian bourse have followed in the footsteps of the precious metal, with " Monarch Gold Mining up 6.1% to 26c", Newmont gained 3.5% to $5.59, St Barbara climbed 4.2% to 75c, Sino Gold firmed 2% to $7.64 and Newcrest added 2% to $33.34 at time of writing.