Barrick Gold is to raise up to $3.5bn through a share offering that will eliminate most of its remaining gold hedging contracts, giving the world’s biggest gold producer full exposure to changes in the precious metal’s market price.

The Toronto-based company announced the move hours after gold climbed above $1,000 an ounce for the first time since March 2008. Investors’ renewed interest has been ascribed to weakness in the US dollar and continuing low interest rates that have dampened returns on holding cash and other liquid investments.