Gold Prices 'could spike above $1,000 per oz' in next 12 months

Commonwealth Bank of Australia analyst David Moore has predicted that Gold Prices could rise above the $1,000 per ounce mark in the next year, Reuters reports.

The yellow metal passed that figure in February and threatened to repeat the trick recently, but it failed to overcome resistance on both occasions and quickly dropped back.

However, Mr. Moore has explained that investors will look to Buy Gold over the next 12 months if they see weakness in the dollar, which tends to move in the opposite direction to gold.

He told the news provider: "A spike to around the $1,000/oz level is certainly plausible in the next year, most likely associated with a period of US dollar weakness."

Gold is often viewed as a valuable alternative investment to paper currencies and a store of wealth in tough economic times.

Last week, Thomas Winmill, portfolio manager for the New York-based Midas Fund, explained in an interview with Reuters that the metal could continue to benefit from the current economic malaise.

"If the economic pessimism continues, I would expect gold to recover like the way it did before in 2008," he said.

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