Randgold Resources Ltd., a miner of the precious metal in Africa, expects increased volatility in gold prices this year as the metal moves in a range from $1,500 to $2,000 an ounce.
News ahead of the U.S. presidential election in November and concerns over debt in Europe will affect prices this year, Chief Executive Officer Mark Bristow said today in Toronto, where he was attending the annual Prospectors & Developers Association of Canada convention.
“The world is even more complex than it was this time last year,” Bristow said in an interview. “You can expect an increase in volatility in the gold price in the next year, up until after we’re behind the elections.”
Gold has risen for 11 consecutive years and reached a record $1,921.15 an ounce in September as investors bought the metal as a haven and to diversify from equities and some currencies. Gold for immediate delivery increased 0.6 percent, the first gain in four sessions, to $1,685.10 at 9 p.m. London time.
Gold supply is “very tight and tightening” and the industry’s costs to build and operate mines is rising, Bristow said. “That’s going to ultimately lead to a higher gold price.”