NEW YORK -

Shares of gold mining companies climbed Monday as the price of the precious metal increased in U.S. trading and an analyst issued an upbeat assessment of the sector.

On the New York Mercantile Exchange, the price of gold climbed $11.90 to $804 per ounce.

Citi Investment Research analyst John H. Hill said in a client note that the commodity is heading into a period of seasonally strong physical demand from the Mideast and India. India's marriage season runs from December through May, and jewelers are expected to begin rebuilding stocks.

The analyst also said the metal's long-term drivers remain intact: Falling mine production, especially in South Africa; competitive currency devaluations; wealth creation in India and China; petrodollar flows; and underlying strength against "fiat" currencies like the U.S. dollar.

"Longer term, we should not be surprised to see gold double from current levels," he wrote, adding that Citi projects the commodity's price at $906 this year, $950 next year and $1,000 in 2010.

In afternoon trading, Barrick Gold Corp. (nyse: ABX - news - people ), the world's largest gold miner, rose $1.14, or 3.5 percent, to $33.30. Newmont Mining Corp. (nyse: NEM - news - people ) climbed 82 cents to $42.33 and Goldcorp Inc. (nyse: GG - news - people ) added $1.27, or 4.3 percent, to $30.83.