Gold Prices 'to hit $1,500' on weak dollar

Gold Bullion Prices could rise to as high as $1,500 an ounce over the next year and a half thanks to a combination of factors.

Bill O'Neill, from Merrill Lynch Wealth Management, told the Times that ongoing credit risk, the strength of commodities and the weakness of the US dollar would contribute to the rise.

"Although the gold price may be volatile in the short term, the long-term trend is upwards, and investors should take advantage of any dips to increase their holding," he told the newspaper.

Gold Prices have dipped slightly from the peaks seen earlier in the month but Lannie Cohen, president of Capitol Commodity Services, told Bloomberg this decline was tied to the strength of the dollar.

"The dollar had been strong for a few weeks now, putting a cap on prices," he was quoted as saying. "If this is the end of that rally, then gold will start to move higher again."

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