Barrick (NYSE:ABX) Chairman Sees Gold Prices Going Higher

Citing the weak economic conditions, Barrick Gold Corp. (NYSE:ABX) Peter Munk said gold prices have a better chance of going higher than falling in the future.

Munk added that he sees no reason for the company to hedge at this time, as it's not likely there'll be major declines in gold prices because of the instability in the global economy, which pushes up rather than lowers the value of gold.

Even in healthy economic conditions gold tends to move upward in the fall season, add the deteriorating global economy and in the near term there will be a big push for gold, which while eventually leveling off, will continue on an upward trajectory for some time to come.

The countries and central banks around the world have for the most part made every wrong decision they could have to battle the ongoing recession, and even though they're saying the possibility of a double dip could happen, the reality is outrageous amounts of money spent on stimulus plans only masked and hid the recession, it did nothing to change it, as the results obviously reveal.

Already the Federal Reserve has stated they're ready to begin "quantitative easing" again (print money, buy Treasuries), and that will play into the increased value of gold as investors flock to it to protect their assets.