The chief executives of two of the word's biggest gold producers said the fundamentals driving the price of bullion remain strong.
Nick Holland, the CEO of South African-based Gold Fields told CNBC that while prices may consolidate a little over the coming months, the long-term picture remains strong.
"The fundamentals behind the gold price remain intact. The one positive thing that I think will help to consolidate gold over the next year is that fact it still represents only a small proportion of total funds under management," Holland said. (Click for full interview)
"Almost every fund I've talked to around the globe wants to have a piece of gold in their portfolio. So gold has regained its investment status as a safe haven and we'll continue to see that over the next year," he added.
"Plus of course the fundamentals in the gold sector - we're not seeing significant additional supply coming on board and we have seen a big increase in demand, certainly in dollar terms, for jewellery as investment. So I would continue to see that the demand for gold would continue to be strong," Holland said.
Mark Bristow, CEO of London-listed and west-African focused Randgold Resources, agrees with his rival at Gold Fields.
"We're getting a tightening of a new gold supply, that is supply and demand, elasticity in the market, and then of course, the outlook, the global economic outlook," Bristow said. (Click for full interview)
"Last year I said this year will probably trade 1,000 to 1,200 (dollars per ounce) as everyone tries to convince everyone else that it's all fine and it's all fixed but I think we've got a little way to work ourselves out of the global mess that we're in," he added.
The comments came as both gold producers posted earnings. Gold Fields saw earnings per share more than triple to $1.34 but missed some analyst expectations. Randgold said it will miss production targets for 2010 by around 5 percent.