'Bullish momentum driving gold prices'

Gold prices could rise to over $1,000 an ounce thanks to an increase in investment from people uncertain about the future of the global economy.

A number of analysts have said they are confident about the future of gold bullion, thanks to factors such as the falling dollar and the shaky US financial system.

John Reade, a metals strategist at UBS AG - a top tier investment banking and securities firm - said that gold buying will be driven by risk-aversion.

''If gold moves from being a minority-held asset class to a popular safe haven, then our forecast of $1,000 in one month and $1,050 in three months will look very conservative," he said, according to Forbes.

Meanwhile, William Kwan, bullion director at Gold Capital Management in Singapore, told Reuters that buying should increase further once gold prices hit the psychological barrier of $975 an ounce.

Gold last hit $1,000 an ounce in March 2008, although it has continued to test these levels in recent weeks.

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