NEW YORK Stock in gold miner Newmont Mining Corp (NEM.N) gained almost 6 percent on Tuesday as the price of the precious metal rose back over $1,800 an ounce.
The surge followed bullish comments by Newmont's CEO that investors should dump dollars and buy gold, and the metal's price rise also boosted the dividend for Newmont shareholders.
In New York, the benchmark December COMEX gold contract closed up $30.20 or 1.7 percent at $1,809.10 an ounce on Tuesday. The price of gold has jumped about 40 percent in the past 12 months and Newmont Chief Executive Officer Richard O'Brien said it could breach $2,000 an ounce by 2012.
"If I had a big pile of U.S. dollars, I'd look at today as a nice opportunity to unload and I'd start moving," O'Brien told Reuters in an interview on Monday on the sidelines of the Denver Gold Forum in Colorado Springs, Colorado.
In afternoon trading on the New York Stock Exchange, Newmont was $3.74, or 5.6 percent higher, at $70.01, beating the 52-week high of $67.35 it hit on Monday; at one point, the stock reached $71.25. By comparison, Canada's Barrick Gold Corp (ABX.TO) (ABX.N), the world No. 1, was only 1.5 percent higher at $54.23 in New York.