is near the final phase of its 10-year bull run, but prices could still climb as high as $1,300 an ounce in 2010 driven by higher investment demand, said Philip Klapwijk, chairman of metals consultancy GFMS.
The rise of gold prices is not sustainable because jewellery demand has dropped to less than half of total demand, and record investment buying at some point will fall off, Klapwijk said ahead of the release of GFMS’ Gold Survey 2010, considered the industry’s premier review of precious metals.
Bullion has more than quadrupled since 2000 when it was trading at about $250 an ounce. Year to date, it has gained about five per cent and spot gold is currently fetching about $1,150 an ounce.
“By the end of this year, we believe prices will be near the $1,300 mark,” Klapwijk said.