LONDON (Commodity Online) : Gold is still not yet reached anywhere near its potential and could hit $2000 an ounce in five years, said Richard O'Brien, chief executive officer of Newmont Mining Corp. Speaking on the sidelines of a conference in Jakarta, he said the world gold price has yet to peak and the steady emergence of a wealthy Chinese middle class will help underpin a move toward $2,000 per ounce over the next five years. Demand from both China and India for gold as both jewellery and as an investment is set to be strong, he said. He said global gold demand and supply conditions are set to ensure the gold price remains robust over time, with entrenched weakness in the dollar set to persist as Congress shows no sign of reining in the country's budgetary woes. Next year, gold will trade in a narrow range of $1,500 to $1,600 per ounce, with the market focused on concerns about China's ability to sustain its expansion, and the potential for a double-dip recession in the U.S. economy, he added. Demand-side dynamics are set to remain strong while global gold supply tapers off in coming years as projects become more expensive to develop and government approvals are harder to get. Some central banks are also starting to buy gold again, he said.

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