Gold 'could rally to $1,200'

Gold prices could go beyond their previous record of $1,000 an ounce by the end of the year.

This is according to analysts at New York's Commodity Exchange (Comex) - part of the world's largest physical commodity futures exchanges - who said that activity in the gold options market could increase prices for gold bullion.

John Bilello, Comex gold options floor trader, told Reuters: "There are a lot of people who think that by the end of the year we'll be trading $1,200 to $1,500. They are not very expensive options, so people are buying them."

Meanwhile, Bill O'Neill of Logic Advisors commented that the general belief is that gold prices will increase, despite a recent period of consolidation.

Earlier this month, Jean Temkin, South Africa Technology analyst and commodities author, said that relationships between currencies and the price of crude oil could see gold prices reach record levels of $1,100 or more.

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