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Gold price may reach $1,200 by 2011, executive says
Gold may reach US$1,200 an ounce in two years, Feng Zhijian, honorary chairman of the Chinese Gold & Silver Exchange Society, said Friday.
The price of the precious metal may rise as the global recession and political instability in some parts of the world sustain its appeal as a haven investment, said Feng, who was speaking at a conference in Shanghai Friday.
Gold for immediate delivery has gained 6 percent this year as the worst global recession since World War II increased its investment appeal. The metal touched a record 1,032.70 in March last year.
“The recession caused a reassessment of the world’s currency system and expectations of central banks diversifying foreign currency reserves into gold should fan demand for gold,” Peggy Ye, an analyst at Shenyin & Wanguo Securities Co., said at the conference.
China, the world’s biggest gold producer, has increased reserves of the metal by 76 percent to 1,054 metric tons since 2003 and has the world’s fifth-biggest holdings by country, Hu Xiaolian, head of the State Administration of Foreign Exchange, said in April.
Bullion for immediate delivery gained $2.83, or 0.3 percent, to $932.63 an ounce at 11:48 a.m. in London. August gold futures added 0.2 percent to $932.40 an ounce on the New York Mercantile Exchange’s Comex division. Most US markets are closed Friday for the Independence Day holiday.
thanhnien, Bloomberg
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