Newmont Mining Corp., the largest U.S. gold producer, said the price of bullion may jump 36 percent to $2,500 an ounce by 2013.
“I don’t see the facts to cause the gold market to change in at least five years,” Chief Executive Officer Richard O’Brien said in Dalian, China today. Gold may gain to more than $2,000 in 2012 and stay high for the next five years, he said.
Bullion has extended its bull market into an 11th year, the longest winning streak since at least 1920, and reached a record $1,921.15 an ounce on Sept. 6 on demand from investors to protect their wealth from weakening currencies as governments print more money in an attempt to boost their economies.
“There’s going to be a lot of volatility, up, but volatile,” O’Brien said in an interview. “We are going to continue to see the support for gold in that $1,850 range and above.” Cash gold traded at $1,833.82 an ounce today.
Gold is expected to reach highs “well above $2,000 in the coming months on lower bond yields, expectations of poor risky asset returns and volatility, growing European sovereign-debt concerns and general risk aversion,” TD Securities analysts including Bart Melek wrote in a report.
Bullion is up 29 percent this year, outperforming global stocks, Treasuries and most commodities on demand for haven assets and as central banks add to reserves for the first time in a generation. Holdings in exchange-traded products reached a record 2,216.756 metric tons on Aug. 8.
Newmont wants to invest in China and O’Brien said finding a partner may take more than five years.