JOHANNESBURG (miningweekly.com) – Gold’s long-term fundamentals are perfectly aligned for a constantly increasing price, starting six to nine months out. This is because the gold mining industry has gone ex-growth. An increasing number of analysts are reaching the conclusion that new gold supply is under threat and some forecasts show 2025 as having 30% less gold – 20 t of gold instead of 30 t.
“That’s great for gold,” Randgold Resources CEO Dr Mark Bristow commented to Creamer Media’s Mining Weekly Online from London on Thursday, after his company delivered an outstanding set of results for the three months to the end of September.
At $77.3-million, Randgold’s third-quarter profit was 58% higher than the third-quarter profit of 2015, with all of the London-listed company’s gold mines designed to be profitable at a gold price of $1 000/oz.
“It’s only upside for us,” said Bristow. Even the short term is a dynamic time for the gold price. “You’ve got this hung decision on interest rates from the Fed, the ‘Goon Show’ of the American presidential election with everyone speculating what the outcome is going to do to the economy of America, and subsequently the dollar price, and therefore the gold price.
“You saw yesterday some guy speculated on Donald Trump winning and the gold price went over $1 300/oz. Then somebody woke up overnight and said they were going to force interest rates and the gold price went down.
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