JOHANNESBURG () -- World number three gold miner AngloGold Ashanti [NYSE:AU] expected that the gold price would trade at current levels or higher for the foreseeable future, AngloGold Ashanti CEO Bobby Godsell said on Thursday.
At 1:10 p.m., gold was quoted at $633.29 a troy ounce, up $10.45/oz from Wednesday's close and in May gold traded to $730.30/oz, the highest level for gold in dollar terms since January 1980, when gold fixed at a high of $850/oz.
The supply-and-demand position for gold was favourable, with very strong investor interest in the metal, Godsell said.
Demand as Strong as Ever
"The demand for gold is as strong as it ever has been," he added.
AngloGold Ashanti treasurer Mark Lynam said the outlook for the gold price was positive.
However, with the gains in the gold price, jewellery demand was under pressure, he added.
An estimated $90 billion in fund interest had moved into commodities and gold had benefited from this, Lynam said.
"As with the first quarter of 2006, the sharp price moves in the gold market experienced during the second quarter, has seen some weakness in key consumer markets such as Turkey and India, together with a shift by manufacturers to lower gold content in manufactured products," AngloGold Ashanti said in its June quarter report.
"Higher metal prices have also been accompanied by an influx of gold scrap into refineries, with the new secondary refineries in Dubai being the major beneficiaries," the group added.
Investment Markets Strong
"In contrast to a slightly weaker jewellery market, the investment market for gold has remained strong, notwithstanding a general pull-back in commodities and precious metals investing in mid-May," AngloGold Ashanti said.
Gold exchange traded funds grew by some 45 tonnes during the June quarter, with the increase year-to-date some 149 tonnes, the group added.
Central bank selling of gold appeared to have been low since January 2006, AngloGold Ashanti said.
Sales have amounted to be between 30 tonnes and 35 tonnes for the June quarter.