gold for 2012

Gold may crack $US2000 price on demand in China, India

by: Stephen Bell
From: Dow Jones Newswires

Chinese shoppers look at gold jewellery on display at a shop in Hefei, east China. Picture: AFP Source: AFP

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.

Attributed to "The Australian" online today.