Gold driven by Asian demand, not Wall Street, Agnico Eagle says

"Gold prices are going to be fine," Boyd said in an interview with Kitco. "The North American centric view is that it's all about Wall Street, it's all about Bernanke, it's all about quantitative easing and once QE is over, the gold story is over."

However, it is really Asian demand that is supporting gold, according to the executive. "The story is the physical flow of gold is moving. We really don't feel that the Indian market is at risk of seeing a sharp decline in demand, or the Chinese market is going to see a sharp decline in demand," Boyd said.

Gold prices have fallen steeply this year, hitting a low of US$1,192/oz on the London Bullion Market on June 28, before recovering to an average of US$1,284/oz in July and US$1,347/oz in August. Gold closed Thursday at US$1,333/oz, up from the previous day's US$1,322/oz.

Boyd believes there is "measured growth" in the industry which is seeing constrained supply, continued central bank buying and strong Asian demand which will "likely continue to be strong with some volatility."

"Why would Deutsche Bank be building the largest vaulting facility in Singapore - 200t - this tells you that something profound is happening, regardless of the paper market," Boyd said.

In Latin America, Agnico Eagle has the Pinos Altos gold-silver mine in Mexico and the La India gold project in Mexico's Sonora state which began commissioning this month and is expected to contribute 40,000oz gold next year and 80,000oz-90,000oz in 2015.

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