Gold to crest $1,600, says mining CEO
Prices will continue to move up in steps and ultimately top $2,000 per ounce, believes the CEO of Agnico-Eagle Mines.
By Alix Steel, TheStreet
Updated at 4:44 p.m. ET
Boyd is among the many mining executives attending the attending the 20th BMO Capital Markets Global Metals & Mining Conference in Florida this week, and believes "gold will ultimately go above $2,000.”
“I think it’s going to go in steps, so I could see $1,600 this year, which means $40 to $45 silver," Boyd told TheStreet.
Gold for April delivery surged Tuesday, rising $21.30 to settle at $1,431.20 an ounce at the Comex division of the New York Mercantile Exchange. Gold traded as high as $1,431.50 and as low as $1,409.80 during Tuesday's session.
Gold prices also got a boost from rising oil prices and comments from Fed Chairman Ben Bernanke about inflation and the impact of rising commodity costs. In his semi-annual monetary policy report to the Senate Banking Committee, Bernanke reiterated his expectations for modest inflation in the near-term and hastened to assure that the central bank was keeping a close eye on commodity prices.
"The most likely outcome is that the recent rise in commodity prices will lead to, at most, a temporary and relatively modest increase in U.S. consumer price inflation -- an outlook consistent with the projections of both FOMC participants and most private forecasters," Bernanke said in a statement. "That said, sustained rises in the prices of oil or other commodities would represent a threat both to economic growth and to overall price stability, particularly if they were to cause inflation expectations to become less well anchored."
Stocks took a tumble as rising oil prices and Bernanke’s words worried investors. The Dow Jones Industrial Average ($INDU) dropped 168 points, or 1.4%, to 12,058. The S&P 500 ($INX) fell 21 points, or 1.6%, to 1,306, and the Nasdaq ($COMPX) lost 45 points, or 1.6%, to close at 2,737.
Gold mining stocks, a risky but sometimes more profitable way to invest in gold, rallied with the metal even as broader equities sank. Newmont Mining (NEM) closed up 1.5% at $56.09, Barrick Gold (ABX) climbed 1.8% to $53.77 and Angico-Eagle gained 2.5% to finish at $72.08.
Silver prices continued to soar as well, rising 61 cents, or 1.8%, to settle at $34.43. Among silver stocks, Silver Wheaton (SLW) rose 2.4% to $43.58 and Silver Standard Resources (SSRI) rallied 3.8% to $28.17.
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[BRIEFING.COM] The S&P 500 settled lower by 0.8% after early strength turned into afternoon weakness.
Today's headline event came in the form of Ben Bernanke's testimony before the Joint Economic Committee. During his remarks, Chairman Bernanke said premature tightening of monetary policy could stall the pace of recovery. This followed weeks of conflicting remarks from FOMC members, which sparked speculation regarding possible changes to the Fed's policy course.
However, ... More
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