CEO of world’s largest gold miner sees ‘gold spiking up through $2,000’ in the next year

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CEO of world’s largest gold miner sees ‘gold spiking up through $2,000’ in the next year

Gold traded around $1,827 on June 24 and is seemingly set to continue its second straight week of declines. In essence, expectations that central banks will continue to raise interest rates to fight inflation is putting pressure on the prices of the yellow metal. 

Meanwhile, speaking with Kitco news, Tom Palmer, president and CEO of Newmont, the world’s largest gold miner, concluded that the euphoria around investment has diminished more or less. Additionally, a perfect storm seems to be brewing, pushing gold prices much higher than when the war in Ukraine started.   

“I think what we’re seeing with gold is it’s pretty firmly held that $1,800 it’s pushed up into $1,900-$1,950 and as you said spiked a bit through $2,000. In recent times due to some of the geopolitical uncertainty, but we look back over the last couple of years, gold has held pretty firmly in those swim lanes of around $1,850.”

He also added: 

“As we look at the fundamentals around gold, there are lots of signals a point to a goal being able to maintain those levels for some time, and I think with the level of uncertainty around the world. You can see gold spiking up through $2,000 back down into the $1,900s pretty comfortably over the next year or two.” 

Gold demand will come from the new floor 

Current macroeconomic developments favor gold having a new floor, which will help gold mining companies run their business in the long run for the benefit of the shareholders and employees. Monetary stimulus and money printing have somewhat eroded people’s confidence in paper money, and assets like gold may well benefit. 

“We think the floor for gold has changed. You typically saw it sitting at around $1,200 for the last decade. The events of the last couple of years have changed that. The level of fiscal and monetary stimulus that the factors happening around Russia’s invasion of Ukraine goes more comfortably I think sitting with a floor maybe $1,500 maybe $1,600,” Palmer said.

It seems as if the gold miners are poised for a solid decade ahead, with gold possibly reaching all-time highs in the next decade. 

Meanwhile, the length of the current macro crisis will play a significant role in commodity prices and how favorable investors see gold as an investment. 

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Source: ethereum.today

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