Gold Bullion prices heading for ninth annual increase

Gold Prices in London are expected to post their ninth annual rise at the start of the new year, it has been suggested.

The value of Gold Bullion rose by nearly 25 percent in 2009 on the back of speculation over commodity prices, a weak dollar and fears over inflation.

These factors are expected to continue fuelling demand for Gold Investment in 2010, with one expert estimating that gold will reach a new milestone next month.

Speaking to Bloomberg, Fairfax IS London analyst John Meyer said: "We are looking for gold to break $1,200 an ounce in January.

He suggested "a weakening dollar" in the second half of the year would allow gold to continue posting " new gains".

Chris Yoo, of Samsung Futures Co, was in agreement with the forecast, telling the news provider that dollar weakness should continue into next year, meaning that Investing in Gold will remain an attractive proposition.

This is a view with which Annabel Brodie-Smith, of the Association of Investment Companies, is in agreement.

She predicted earlier this week that resources such as the yellow metal will be in high demand next year as a result of the ongoing economic recovery.