AngloGold sees gold at $1,600

[miningmx.com] — GOLD prices could reach $1,600 an ounce by the end of next year, AngloGold Ashanti, the world’s third-largest producer, told Reuters on Tuesday.

“We think the direction for gold looks like it could continue to be quite strong on the upside,” Mark Cutifani, CEO of AngloGold Ashanti said at the Reuters Global Mining and Steel Summit.

“You could say we should breach $1,500 next year and we use (an increase of) about $100 an ounce a year on the supply side to give a sense of where the market goes over the long term,” he said.

“Basically I’m saying towards the end of next year, we should hit $1,600 based on those numbers.”

Spot gold was trading at $1,429.85 an ounce during early trade on Tuesday, compared with $1,425.05 late in New York on Monday.

The metal hit a record high of $1,440.40 an ounce on March 7, supported by its status as a safe haven from risk and inflation as unrest in the Middle East has spurred oil prices higher. Japan’s nuclear crisis has also supported prices.