Current climate "almost ideal for gold"

The current economic climate is nearly perfect for gold trading, an expert has said.

According to the Budapest Business Journal, gold prices are set to finish 2007 at least $100 higher than they were at the start of the year, following a record peak in November.

Dominic McCormick of Select Asset Management said that a number of factors have combined to provide a sound environment for those with investments in gold.

"In many respects, the current environment is almost ideal for gold," Mr McCormick explained.

"We are seeing a continued erosion of confidence in the US dollar, which has been the cornerstone of the world financial system since - and even before - a formal link to gold was cut in 1971."

Meanwhile, Philip Klapwijk of Gold Field Mineral Services suggested that prices could make enough gains in the future to hit $1,000 per ounce during 2008.

Keith Fitz-Gerald, investment director of Money Morning, made a similar prediction earlier this week, indicating that gold prices could reach four figures after seeing a decline next year.