Within 12 months, gold futures will notch prices as high as $1,600 per troy ounce, according to two mining companies.
Reuters reports the top officials from Newmont Mining of the U.S. and Agnico-Eagle Mines of Canada said the price stands to drive as high as $2,000 per troy ounce a few years later. Increasing demand from China and India, gold purchases by central banks and gold's use as proxy currency are some factors that will drive gold futures' prices.
"It just depends on how well governments respond to inflation, on whether there are counteracting activities that governments take to forestall the rise in inflation," Richard O'Brien, president and chief executive officer of Newmont, told the news agency.
Immediately prior to 5 p.m. on Monday, gold futures were up 0.83 percent, an $11.70 increase to $1,427.80 per troy ounce.
"If you had said 10 years ago that gold was going to be at $2,000, everyone would have agreed that the world would be in a total shambles and there would be chaos in the streets," Agnico-Eagle chief executive Sean Boyd said. "You could see gold at $2,000 and you could see the world function the way it's functioning right now. And, I don't think that's a stretch."
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