Gold to reach record above $2,000 this year: GFMS

15th September 2011, Comments 0 comments

The gold price is on course this year to go above $2,000 an ounce for the first time as investors seek out the safe haven metal amid economic turmoil, consultancy GFMS forecast on Thursday.

Gold was being traded at $1,810 on Thursday, off its record high of $1,921.15 an ounce reached on September 6.

"Although prices might first encounter a soft patch, gold could rally through the $2,000 mark by year-end," GFMS said in its Gold Survey 2011.

It said it expected this "to mainly arise through further growth in investment."

In recent weeks and months, gold has surged ahead as investors sought safety amid slowing economic growth, rising inflation and the eurozone debt crisis. It has also benefited from unrest in the Middle East.

The glamorous precious metal, whose two main drivers are jewellery and investment buyers, is widely regarded as a safe haven in times of economic and political uncertainty, and a good store of value amid soaring inflation.

© 2011 AFP

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