Gold 'will go higher in 2009'

Gold prices could reach up to $1,100 an ounce next year, it has been predicted.

Speaking in an interview on CNBC television, Newmont Mining chief executive Richard O'Brien said he expects gold bullion to stay within the range of $1,000 to $1,100 an ounce in 2009, Reuters reports.

While the estimate is somewhat conservative compared with other forecasts in recent times, Mr O'Brien's comments indicate that confidence in gold is continuing to rise.

He said that he expects lower gold output, high demand for gold jewelry and the weak dollar to continue to influence the cost of buying gold.

According to GFMS, global gold output hit an 11-year low in 2007, with all regions apart from Asia reporting declines in production. China has now overtaken South Africa as the world's biggest gold producer.

GFMS said that it expects gold mining levels to stay the same as last year in 2008.

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