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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: aknahow who wrote (73489)	11/2/2006 8:53:20 AM
From: Crimson Ghost	Respond to of 110194

Newmont executive sees gold over $700 in 12 months NEW YORK, Nov 1 (Reuters) - With gold production declining and central banks starting to sell-off, the price of the metal could rise through the $700-an-ounce barrier in the next 12 months, a senior executive of the world's second largest gold producer said on Wednesday. "Our view over the next 12 months is you could see a downside for gold of $20-$35, but on the upside you could very well see $700 gold in 12 months," Newmont Mining Corp. (NEM.N: Quote, Profile, Research) President Pierre Lassonde said. "Mine production is set for its fourth annual decline and next year's total worldwide production will be down again. "We are seeing central bank selling abating and some central banks are starting to buy gold. So you will have less gold for sale and higher demand," Lassonde told Wall Street analysts on a conference call to discuss Newmont's results. His comments came as gold jumped 2 percent to its highest New York close in eight weeks. December gold at the COMEX division of the New York Mercantile Exchange <GCZ6> settled $12.50 higher at $619.30 an ounce, the priciest close since Sept. 7. The rally dampened the bearish sentiment since gold tumbled to $557.10 on June 14 from a 26-year high on May 12 at $753. "What we are seeing with the U.S. economy now is we are entering a mid-cycle slowdown, which will be more pronounced next year," said Lassonde when asked to give his assessment of the gold market. "I believe inflation has peaked but will stay at higher levels that the Fed (Federal Reserve) intimates. "The gold price will anticipate any Fed action and my guess is the Fed will blink and start to lower (interest) rates as they don't want a recession." Lassonde said physical demand for gold in the third quarter was "very, very robust" at the jewelry level in India and China. Earlier, Denver-based Newmont announced that Lassonde would retire as president of the company on Dec. 31. He will stay on part-time and serve as vice chairman of the board, effective Jan. 1, 2007, it said in a statement. Newmont reported third-quarter profit jumped 57 percent as high gold prices outweighed lower production at some of its big mines.