Goldcorp CEO Says May Be Correction in Gold Price This Yr, But Long Term Outlook Remains Strong: report
There could be a minor correction in the skyrocketing gold price before the end of this year, but the long-term outlook remains strong, Goldcorp (G.TO) Chief Executive Chuck Jeannes said on Friday, according to a Reuters report.
Reuters said the spot gold price has risen more than 25% since the end of June and more than 32% year-to-date as the specter of sovereign debt defaults and cracks in an already fragile economic recovery have driven investors to buy gold, often viewed as a safe haven during turbulent times.
Spot gold touched a record high of C$1,877 an ounce on Friday after weak U.S. economic data spooked investors and led to a renewed flight to safety, it said.
"Whenever we start to see these very large, near parabolic moves in the price it does make me nervous. I would prefer to see a more steady measured growth in the price like we've seen over most of the last 10 years," Jeannes reportedly said. "What it means is there will be a correction at some point - that is natural and that is actually healthy for a market."
He reportedly said the correction is likely to come this year, but added it will be relatively minor and short, as the market is now entering what has historically been the strongest part of the calendar year for gold demand and prices.
Despite the likely pullback, Jeannes reportedly said the stage is set for gold to breach its inflation-adjusted record high of $2,400 per ounce in the near future.
"We seem to be getting there faster than I thought," he said in an interview with Reuters. "I used to think of that number in a three- to five-year time horizon, but now I could certainly see it happening in the next year or two."
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.