Gold 'could hit $900 soon'

Yellow metal prices could hit the $900 mark in the near future on its way to reaching even higher levels, an expert has said.

Speaking to Mining MX, Philip Klapwijk, executive chairman of consultancy GFMS, said that such movements could be likely following the "clear breach" of the $850 milestone.

However, he warned that a sharp rise in prices, coupled with uncertainty in the market, may be bad news for jewellery demand - particularly in China.

Despite this, some people are continuing to eye up the $1,000 mark for gold prices, Mr Klapwijk commented.

"I'm not sure we go from here to $900 and then, bang, straight up to $1,000," he remarked.

"There could be a setback along the way and in a couple of months we'd be looking at a market that's gone to $900 and then come back down again."

The comments came shortly after Sean Brodrick of Money and Markets claimed that it was possible gold prices could pass the $1,100 mark during the course of 2008.