Wednesday, 31st May 2006 (3571 views)

The chief executive of South Africa's Gold Fields declared today that the price of gold could reach $1,000 per ounce during the coming years, according to the Reuters news agency.

Ian Cockerill believes that large investment from oil producers will lead the charge towards the $1,000 mark.

"I see the price continuing from these levels and moving higher, and in fact could move significantly higher over the next couple of years. I would not be surprised to see it going up into four figures in dollar terms, that's a very real possibility," he told the news agency.

Mr Cockerill was speaking following comments he made on Tuesday saying that the prices will eventually move back to a steady level close to $500.

"A longer term equilibrium price is closer to $500, if one looks at the fundamental level, but I don't see us being in any danger of getting to that level in the short-term. I see the prices going higher from here not lower, and then going back (down)," he said.

The price of gold stood at $658 an ounce this afternoon, down from a 2006 high of $730 per ounce on May 12th.

 

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