Gold Miners Bullish on Price of Gold in 2012

Gold miners (NYSEARCA:GDXJ) predict that the price of gold will keep increasing in 2012 and are revising their mining plans as a result, said PricewaterhouseCoopers on Monday.

PwC said in its annual Gold Price Report that 80 percent of mining companies surveyed believe the price of gold will continue its rise this year, with most respondents foreseeing a 2012 peak price of $2,000 a troy ounce.

The survey polled 40 gold companies representing 26.5 million ounces of gold mined in 2011, and 37.75 million ounces to be mined in 2012.

Executives will use an average price of $1,420 per ounce in their mine planning this year, compared with $1,130 per ounce in 2010. The price that executives plan to apply to their 2011 reserves ranges between $850 and $1,650 per ounce, with 32 percent applying a price of $1,200 per ounce.

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