Lihir Gold (ASX:LGL): Gold Price US$1500 Achievable

Sydney, Oct 12, 2009 AEST (ABN Newswire) - Australia's second biggest gold company Lihir Gold Ltd (ASX:LGL) says the price of gold could climb to US$1,500 per ounce after it rose to a record high last week.

The value of gold has soared in recent weeks as the US dollar experienced weakness, China restocked and investors looked for a hedge against inflation. Lihir Gold chief executive Arthur Hood expects a further rise and sees the US$1500 level as perfectly achievable.

As China's reserves increase, its proportion of gold stays the same, so that in its own right will increase demand from central banks," he said.

In addition, there's a gentle decline in mine supplies, but physical demand for gold is staying constant if not increasing. Meanwhile, a number of central banks have tipped that they are increasing their percentage of gold reserves.

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Michelle Liang Asia Business News Asia Bureau Tel: +61-2-9247-4344 Email: michelle.liang@abnnewswire.net