Barrick Chair, Peter Munk: “Gold Price Trend Here to Stay”

DAVOS (Reuters)  - While the gold price may be volatile, its upward climb is not over, the chairman of Barrick Gold Corp (ABX.TO: Quote), the world’s biggest gold producer, said on Wednesday.

“It may fluctuate, (but) to us and I think to our investors, the key criteria should be that it’s got a secular tendency now to move up year in and year out, Peter Munk told Reuters Insider television from the World Economic Forum in Davos.

“While it may trade off in the two-week or three-month period, I think the trend is here to stay.”

Last year was the tenth straight year that the gold price XAU= ended higher than the previous year, he added.

Spot gold climbed 40 percent last year, but it has slipped 11 percent since touching a record of $1,226.10 per ounce last month.

Gold prices are expected to rise 13 percent this year, helped by low interest rates and concern about inflation, according to a Reuters poll of 60 analysts.

(Editing by Elaine Hardcastle)

© Thomson Reuters 2010 All rights reserved

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