Sustained Gold Bull Run

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    DJ. INTERVIEW: Gold In For A Sustained Bull Trend - Gold Fields

    By Ian Kerr

    Of DOW JONES NEWSWIRES



    TOKYO (Dow Jones)--Spot gold's overnight gains to its highest levels since
    February 2000 are sustainable and part of a bullish trend suggesting further
    potential, according to Chris Thompson, World Gold Council chairman and chief
    executive of the world's fourth largest gold producer, Gold Fields (GFI).

    In a telephone interview with Dow Jones Newswires from Johannesburg, Thompson
    stressed that all the essential conditions for gold to rise higher are in
    place.

    Namely, a weaker U.S. dollar, Middle East tensions and lingering doubts
    surrounding the strength of the U.S. economic recovery.

    "Quite honestly, all the risks that I can see are to the upside," he said.

    Spot gold was trading around US$316.05 a troy ounce in Asian trade early
    Tuesday, well above US$312.45.oz late Monday.

    Insisting that supply over the coming years will continue to tighten,
    Thompson's longer term outlook is also bullish.

    ……….

    Commenting on some independent studies that have predicted a 30% decline in
    industrial production worldwide over the coming 10 years, Thompson said some of
    the figures appear overly optimistic.

    Gold supply is certainly falling in South Africa, the world's largest gold
    producing nation, he noted.

    He said if the industry were to try to take advantage of the yellow metal's
    recent rise by boosting production, "it's a long pipeline, somewhere between
    five-seven years, so nothing is going to change the situation straight away."


    ………


    Thompson insisted that even if gold should rise as high as US$350/oz,
    producers who belong to the hedgers camp and still have room to short, are unlikely to lock in more attractive prices. "On the contrary, pressure will
    only grow on producers to reduce their positions," Thompson said.


    -By Ian Kerr, Dow Jones Newswires; 813-5255-2935; [email protected]



    (END) Dow Jones Newswires 21-05-02

 
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