Gold 'has room to go higher'

Investors in gold bullion might like to know that one fund manager has predicted fresh highs for the yellow metal.

With gold prices reaching new record-breaking levels in recent times, it may seem to some that the metal does not have much farther to go.

However, Charles Ober of the T Rowe Price New Era fund told the Washington Post that gold has always been "a very dramatically under-performing asset class."

"You can make the argument that gold has got a lot of room to catch up," he remarked.

A recent report from Resource Capital Research made a similar suggestion, predicting that those buying gold could see prices rise to the $1,000 per ounce mark within the next six to 12 months, tallying with the Gold Survey 2007 from GFMS, which also made the same forecast.

The consultancy said prices look likely to be driven by "undimmed" investor demand for gold bullion.

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