Gold’s spot price is likely to remain between $US1200 to $US1300 an ounce for as long as two years after rising more than four-fold between 2005 and September 2011, Mike Edwards, chief executive officer of gold explorer Monteray Mining Group, says.
“For a year or two I see gold around $US1300,” Edwards told Markets Spectator.
“Gold has had a good run. Producers have to deal with [the current price]."
Bullion’s spot price rose from $US412.70 an ounce on February 8 2005 to $US1900.23 on September 5, 2011, according to Bloomberg data. The price has since fallen 32 per cent.
At 0817 AEST gold was at $US1287.45 an ounce. Spot gold is up 4.3 per cent this month.
Gold miners in the current environment need to keep their all-in costs no higher than $US800 an ounce, says Edwards, with yields from mining and processing at four grams a tonne.
“Gold stock values need to come up before gold rallies,” he says.