Perth, Australia — MININGREVIEW.COM — 17 March 2010 – Newmont Mining Corporation “’ the largest gold producer in the United States “’ says it is quietly confident that prices of bullion will increase this year, buoyed by a lack of selling from central banks, as well as investor appetite for the precious metal.
“The continuing decline in official sector sales is obviously going to be a positive thing for the gold price,” Newmont regional group executive of operations in the Asia Pacific Philip Stephenson told a conference here. “With Russia, China and India continuing to buy gold, we don’t see a change in that in 2010. We expect to see a continuing movement from sovereign bonds and into gold.”
“There’s modest downside risk in the short term, and then a very, very slow grind higher for gold prices,” Westpac Banking Corporation economist Huw McKay told the conference. “Because the base metals themselves will be rising, gold will hold that US$1 000 floor, and periodically it will have some upside to it,” he said.
The gold price is not going to rise as much as other commodities in 2010, McKay added. “The investors’ need to buy the metal for its safe-haven status has dissipated since emerging economies have recovered from the financial crisis.”
“China’s demand for bullion was insatiable,” said Stephenson. “We saw a 20 percent increase in investment in China last year, and we’re expecting similar demand levels in 2010,” he added. He declined to comment on whether the company was considering takeover targets.