Experts point to higher gold prices

With gold prices reaching new highs in the last few days, a number of analysts have indicated that the yellow metal could go even higher.

Speaking to sify.com, Raghavan Sunderajan, research analyst at Kotak Commodity Services, said that gold prices in India are expected to hit the $1,200 an ounce mark in between six and 12 months' time.

Earlier this month, Dr Paul Walker, chief executive of GFMS, told the Mining Indaba conference in South Africa that prices were expected to reach $1,000 an ounce by the end of the year, going no lower than $800 - which may be good news for those with gold investments.

Meanwhile, Merrill Lynch metals strategist Daniel Hynes recently told the Financial Times said that while there are "a multitude" of factors pushing up the price of gold bullion, inflationary worries are currently key.

"We've seen money continue to flow into the sector. Every time there is a dip in gold prices, buyers come in aggressively," he remarked.

Mandy La Grange of Nomura noted: "The fight against inflation is being sacrificed in G7 countries to avert the risk of recession and investors are likely to seek gold as an inflation hedge."

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