Gold at $1,500 is “very achievable”: Barrick president Kelvin Dushnisky (Business Network News – February 18, 2016)

The president of the world’s largest gold producer says the $1,500 per ounce call from a recent HSBC report is “very achievable,” as the precious metal enters the early stages of a new bull market.

“I think the fundamentals are really going to show support for the gold price,” said Barrick Gold Corp.’s (ABX.TO 0.00%) Kelvin Dushnisky in an interview with BNN.

Gold futures rallied Thursday as mounting concerns about the stability of global markets and low inflation tapered expectations that the U.S. Federal Reserve will raise its key lending rate in March.

Dushnisky expects volatility in the bullion price to persist in the near-term, but says over the next year, declining production around the world and ongoing geopolitical tensions will push the yellow metal higher.

“In addition to that, we see more buying in China, India, and inflows in the ETF which we haven’t seen in a little while,” he said. “The $1,500 gold price that HSBC has, I think is very achievable.”

Dushinksky told investors on Barrick’s fourth quarter earnings call Thursday that he intends to structure operations to be sustainable “at virtually any foreseeable gold price.” He says Barrick’s $831 per ounce all-in sustaining cost is the lowest among senior gold companies.

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