Barrick Gold sees gold rally continuing
NEW YORK (Reuters) - Barrick Gold Corp (ABX.TO) (ABX.N), the world's largest gold producer, is not going hedge its production with gold prices almost nudging $1000 an ounce and expects prices climb further, Chief Executive Greg Wilkins said on CNBC on Thursday.
Gold producers will sometimes sell their output forward, buy options or invest in other financial hedges to lock in a minimum price.
But many producers have reduced or eliminated their hedges to take advantage of the rising bullion, which on Thursday traded less than $20 from the landmark $1,000 an ounce level.
"The fundamentals are in place for a good sustained rally in gold prices," said Wilkins, in an interview on CNBC, while adding that there is a lot of room to go in the gold price.
Gold has gained nearly 20 percent in 2008 as funds, speculators and investors pour money into precious metals, expecting further U.S. interest rate cuts and record-high oil, which enhance the precious metal's safe-haven appeal.
Gold prices hovered around $990 an ounce, while silver prices are about $21 an ounce and platinum is about $2,225 an ounce.
With platinum prices rallying, it is possible gold could replace platinum in catalytic converters in automobiles, said Wilkins.
(Reporting by Euan Rocha and Atul Prakash; Editing by Derek Caney)
