Barrick's Bristow says gold could hit $2000/oz again

NEW YORK (May 10)  Barrick Gold's Mark Bristow recently gave an interview in which he noted that gold will end up near $2000/oz by the end of the year due to "uncertainty". He was sounding doomsday alarms and looked pretty flustered about the situation in the global economy.

Bristow said that he believes that "we are due a significant correction in our markets in the developed world". When asked about what drives the gold price higher, Bristow said "the U.S. dollar is being used as a weapon against Eastern Europe". He added there is a fragmentation of the global trading platform (globalization).

He went slightly doomsday saying there is a non-alignment of what brought stability in the last century. Adding we are in unchartered territories in every aspect.

Gold has currently suffered a pretty big correction. The yellow metal is trading at $1858/oz as of Tuesday. The high of this year stands at $2070.42/oz but recently the rise in yields has offered safe-haven chasers another asset close to diversify into. One of the world's largest physical gold consumers (China) has also enacted lockdowns again as another COVID-19 outbreak grips the nation. This could affect the physical consumption of the metal. Over the coming weeks, it will be interesting to see how much further the U.S. dollar has to run as the dollar index just hit levels it has not reached since the beginning of 2017. 

KITCO