Gold 'may hit $1,000 next year'

The price of gold on the world market could continue rising to $1,000 per ounce within the next 18 months from its present level of $700 per ounce, a Thai stock analyst said here Saturday.

The analyst, Visit Ongpipatkul, a top executive of Bangkok's Trinity Securities, said at the Money Expo 2006, being held at the Queen Sirikit Convention Centre here from May 11-14, that the combined gold reserves of several Asian countries now total around $3 trillion, and that the global gold price could shoot up to US$1,000 per ounce within the next 18 months due to buying pressure by countries changing their reserve holdings from US dollar to gold and on the assumption that the greenback would depreciate to 102 Japanese yen per US dollar.

Gold prices in Thailand could, therefore, become volatile, he cautioned.

Some investors are speculating in gold as global oil prices have continued to rise and China and other Asian nations are reducing their US dollar holdings and switching to gold, instead, said Mr. Visit.