Gold hit record highs above $1,600 per ounce could later this year, driven by low interest rates and persistent concerns over the eurozone debt crisis, metal equipment GFMS forecast on Thursday.
GFMS "GFMS expect that towards summer could start prices much higher, with gold may at this time to break $1,500 (per ounce) to move," said in its latest report.
' An approach to see or even injury $1,600 late 2011 and early 2012 as quite feasible.
' Much of this is expected to lower interest rates due to his poor, elsewhere () the increased level of government debt in Europe, the United States and Japan,' the report said.
Advising added that gold has been lifted by "nagging concerns about the quantitative easing in the United States and its consequences for the dollar."
The US Federal Reserve was making to strengthen new money pump in the U.S. economy to a slow recovery, but to it risks remove the basis of the value of the dollar.
Gold hit a record $1,431.25 on December 7, boosted by its safe haven status in times of economic uncertainty as investors fretted over eurozone debt crisis.
' GFMS report illustrates the critical role that investment demand played last year in bringing about a series of record price highs and 26 - percent jump in average,' added advice.
' These elevated concentrations of interest were again attributed to a number of factors, most notable that were first European government bonds concerns and arguably, rising concerns about fiat currencies in General.'
The metal is regarded by investors as safe store of value amid fears of rising inflation.
' Inflation may seem a very distant threat today, but there are many investors out there that looks real longer term dangers involved in the current US policy and the lack of political will or consensus deficits, start fighting ' Chairman GFMS Philip Klapwijk said.
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