Gold may touch $1,200

Saturday, September 05, 2009

International gold prices may touch $1,200 an ounce by the end of December, 2009, a top trade official said on Friday. “Investment demands by gold exchange-traded funds and China buying more gold reserves will help achieve this target,” said Suresh Hundia, president of the Bombay Bullion Association on the sidelines of a conference.

Gold steadied below $990 an ounce on Friday, consolidating a potent two-day rally that took the market to within a whisker of $1,000, with inflation concerns and jitters over stock market gains stoking investor interest. Buying of gold exchange-traded funds picked up, with holdings of the largest, New York’s SPDR Gold Trust, posting its biggest one-day percentage rise since March. India is a major importer of gold.

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