Denver-based Newmont Mining Corp. president Pierre Lassonde said gold may rise to $525 an ounce by early next year, up 11 percent from today’s prices, as jewelry demand climbs and production from mines declines.
“We’re seeing the best supply-demand fundamentals in this industry in about 20 years,” he said.
“The jewelry market is on fire,” and “supply is falling, mostly because mine production is coming off again,” he added.
Gold prices in New York closed Wednesday at their highest level in 17 years as energy costs climbed, prompting investors to buy the precious metal as a hedge against inflation.
Gold futures for December delivery rose 1.5 percent Wednesday to $473.10 an ounce on the Comex division of the New York Mercantile Exchange.
On Sept. 22, the metal reached $479, the highest intraday price since January 1988. Gold last climbed above $525 an ounce in February 1981.
