'Not game over' for gold rally

Gold Fields Mineral Service (GFMS) has released its Publication of Gold Survey 2008 this week.

The future could be good for gold prices as it outlined the findings of the company regarding the gold market for 2007, along with predictions for 2008.

Philip Klapwijk, chairman of GFMS, said that he thinks the market will remain strong for gold bullion, with the current corrections not being a major problem.

"We don't think current hesitancy means it's game over for the rally. Many of the drivers behind this investor push after all - dollar weakness, skeletons in banks' closets - are still very much with us," he said.

He added that it is possible that gold could reach $1,100 an ounce later this year.

Gold prices were on the increase again on Wednesday following news that US petrol prices have reached a record high for consumers.

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