Gold prices tipped to stay strong

The gold price will remain static, around the historically high $US1,100 per ounce mark, despite the US dollar strengthening, a major global gold producer says.

The gold price is usually high when the greenback is weak as the metal is seen as a safe haven investment.

Staying around the $US1100 mark would be to reverse the usual dynamic.

Newmont Asia Pacific regional group executive operations Philip Stephenson told a conference in Perth yesterday that the gold price would remain strong in the short-to-long term.

The US dollar had gained ground, Mr Stephenson said, reflecting uncertainty surrounding European economies, with investors piling out of the Euro and into the greenback.

"It will be interesting to see how long it is until it returns to its normal linkage," he said.

"Russia and India continue to buy and I don't see this changing in 2010.

"China's insatiable appetite for gold remains."

Mr Stephenson said Newmont's new Boddington gold and copper mine in Western Australia was 70 per cent ramped-up and was on track to produce more than one million ounces of gold in its first year of operation.

Gold and copper recoveries were above design expectations, he said.

"Don't be surprise if this ends up being an operation that goes for 30 to 40 years."

- AAP