Gold price 'could reach $1,600'

Gold price 'could reach $1,600'

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Tuesday, 14th September 2010 (356 views)
The price of gold could rise to up $1,600 by the end of 2012, it has been claimed.

An expert from the Italian bank UniCredit has stated his belief that gold could reach the new high as the precious metal continues to attract new investors.

Three key reasons are helping the precious metal in its move to attract new investors, trading network Benzinga reports. Growing demand from emerging markets, in particular China, is helping to encourage prices, while fears over money printing in the US and the sovereign debt crisis in the euro area are also offering support for the precious metal.

Jochen Hitzfeld from UniCredit, said: "The Chinese government has encouraged consumers to invest in gold, and with great success. Chinese demand will now increasingly be felt on the global markets," the Telegraph reports.

Other investment experts echo Mr Hitzfeld's position, suggesting that gold is likely to remain strong in the coming years, even though prices have risen every year for the past decade.