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« Competition for the IMF’s Gold? | Main | Randgold Resources Limited Stopped Out on Options Play with a Small Profit »
Thursday
Mar112010

Randgold CEO sees range bound gold price in 2010

Reuters Logo 11 March 2010.JPG

Randgold Resources Limited (GOLD) Chief Executive Mark Bristow sees gold as being pretty flat over the coming year or so as per this snippet from an interview at The Prospectors and Developers Association of Canada (PDAC)

TORONTO, March 10 (Reuters) - The price of gold is likely to remain range-bound through the course of 2010, the head of Randgold Resources (RRS.L) said on Wednesday.

"This year is going to be a relatively flat year for gold with the price ranging between $1,000 to $1,200," said Chief Executive Mark Bristow, speaking on the sidelines of the Prospectors and Developers Association of Canada (PDAC) mining convention in Toronto.

Bristow believes the price of gold will begin to climb again in 2011 as the world begins to face inflationary pressures caused by huge levels of government stimulus spending designed to counter the economic downturn.

However, Bristow thinks the U.S. dollar will remain relatively strong as major currencies like the euro, the yen and the Canadian dollar are not in a position to rally against the greenback.
"Lots of people are very bearish on the dollar, but compared to what? You will see on a relative basis the dollar being a lot stronger than some people think," he said.

Moreover, China cannot allow the yuan to strengthen against the U.S. dollar, said Bristow.

"The problem with the Chinese is that if they move in any way to devalue the dollar, or find alternatives, they will destroy their balance sheet, because they are the biggest holders of U.S. dollars," said Bristow, who heads the African-focused gold producer.

So there we have it.



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Reader Comments (2)

Wonder if Bristow wants to change his comments or numbers with gold making new high in May.

John Ing is a lot more optimistic - $2000 by year end.

May 13, 2010 | Unregistered Commenterep

He is no doubt happy with Randgold at $90 a pop...

May 13, 2010 | Unregistered CommenterGold Prices

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