Gold will rise as high as $750 an ounce this year, about $100 more than today, as concern about accelerating inflation spurs demand for the metal as a store of value, Newmont Mining Corp. Vice Chairman Pierre Lassonde said< Bloomber reported.
Gold has climbed 2.3 percent this year, partly on speculation that higher prices for raw materials including crude oil and wheat will spur demand for the precious metal as a hedge against inflation. The European Central Bank and the Reserve Bank of New Zealand have raised rates this month.
The slowdown may cause gold to fall as low as $630 in the next several weeks before rebounding to $700 or $750 by the end of the year, he said.
Lassonde retired in December as president of Denver-based Newmont, the world's second-biggest gold producer. Lassonde said he has returned to venture capital with partner Seymour Schulich, including buying 17 percent of Canadian diamond exploration company Olivut Resources Ltd.
Toronto-based Barrick Gold Corp. is the world's biggest gold producer.
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Gold Will Rise to $750: Gold Producer Chairman
Lassonde retired in December as president of Denver-based Newmont, the world's second-biggest gold producer
