S&P Likes Barrick (NYSE:ABX), Newmont (NYSE:NEM), Randgold (NASDAQ:GOLD) Among Gold Miners

Barrick Gold (NYSE:ABX), Newmont Mining (NYSE:NEM) and Randgold Resources (NASDAQ:GOLD) are the favorite gold miners among researchers at S&P, who see gold prices rising to $1,600 an ounce in 2011.

Research by Standard & Poor’s MarketScope Advisor said the major reasoning behind their more bullish outlook is an increase in demand for gold and drop in gold production.

Also noted was the monetary policies and low interest rates as additional reasons for gold prices to continue to find support, especially in developed countries.

With the expansion of the money supply via quantitative easing, the researchers said it “leads to rising inflation and the debasement of the currency.” That of course means capital eventually fleeing currencies and other low-yield investments and migrating to gold, as it has over the last decade.

For companies like Barrick Gold, Newmont Mining, and Randgold Resources, which S&P follow, the researchers said they see “sizeable gain[s] in sales and earnings versus 2010 levels.” They added, EPS estimates are growth of 50 percent for gold miners they track.

Randgold closed Monday at $82.05, gaining $2.09, or 2.61 percent. Barrick Gold closed at $47.83, down $0.28, or 0.58 percent. Newmont ended the session at $57.15, gaining $0.18, or 0.32 percent.