Milton Financials: Anglo-Gold Ashanti says gold price likely to continue rising.

Sept. 28, 2010 - PRLog -- Anglo-Gold Ashanti Limited has told Milton Financials that they predict the gold price, already at record highs, will continue to increase, possibly by between US$70 and US$100 an ounce annually over the next five years as investor demand gains momentum.

“You can add about US$70 to US$100 an ounce each year over the next five years,” AngloGold CEO Mark Cutifani told reporters via a teleconference from Johannesburg, South Africa.

Similar recent predictions such as the forecast by the world’s largest gold producer Barrick Gold have been more optimistic, expecting a gold price of US$1,500per ounce by early 2011.

Cutifani told Milton Financials that rapidly rising gold prices were outpacing increases in the average global production costs, currently at about US$950 to US$1,000 per ounce due to increased investment interest in both gold equities and direct investment into the precious metal through exchange-traded funds.

Spot gold recently touched an all-time high of US$1,300, extending a two week rally on the back of concerns over a slowing global economic recovery and a weaker US dollar.
Investors often turn to the security of gold in times of uncertainty over other investments such as currencies and stocks and bonds.

Milton Financials’ data shows that the gold price has climbed 18 percent this year already and AngloGold shares have seen a 4 percent increase.

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