Analysts are continuing to think positively when it comes to spot gold, with one claiming that an increase in investment could push prices beyond the previous record of $1,000 an ounce, which was set in March.

According to Reuters, portfolio manager of the Midas Fund in New York Thomas Winmill says that he believes prices may rise to $1,600 an ounce within the next 12 to 18 months given the current economic climate.

"The basic underpinnings for the current bull market are in place for gold and other hard assets. As long as we see the Federal Reserve cutting short-term rates and there will be more pressure on the inflation rate, that trend will be in place," he said.

Forbes reports that the US Federal Reserve could cut interest rates by 50 basis points at its upcoming meeting, which may lead to an increase in gold investment against the continuing unstable economy.

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