Newmont CEO: Gold to benefit from inflation

NEW YORK (Reuters) - Gold will benefit from inflation as central banks around the world continue to use stimulus programs to spur economic recovery, the chief executive of the world's No. 2 gold producer Newmont Mining Corp (NEM.N) said on Monday.

"My view is that each country in the world, to some extent, has fueled the reigniting of its economy through issuance of additional currencies," CEO Richard O'Brien told the Reuters Global Mining and Steel Summit in New York.

O'Brien said that even though accommodative monetary policy is clearly helping the economy getting its feet back under itself, there is a price for doing that.

"The long-term impact of all the stimulus programs that we have seen in the U.S. and in European countries is going to come home to roost."

"And that is why I believe that the $1,500 target over the next several years is something that we can probably reach. I think for this year, $1,000 to $1,250 is a good trading range for gold."

In addition, O'Brien cited dwindling mine production, rising cost pressures and renewed interest among central banks to own gold as part of their reserves.

U.S. April gold futures ended down $11.20 at $1,124 an ounce on technical selling.

(Reporting by Frank Tang)