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The price of gold is set to remain high next year, putting it on track to break US$1000 ($1318.91) an ounce for the first time, as the yellow metal continues to offer investors a safe haven from volatile financial markets and supply remains tight.
During this year, the price of gold has traded in a US$243.50 range, from a low of US$601.90 in January and a high of US$845.40 in November, as investors sought a hedge against rising global inflation and equity, debt and foreign exchange markets wobbled.
Next year, gold is tipped to rise to a 28-year high of US$850 in the first quarter as financial markets jitters prevail, and could reach as high as US$1100 by December, market watchers say.
Mark Cutifani, the chief executive of the world's third largest gold producer, AngloGold Ashanti, is very confident about the ongoing strength of the gold price.
"You can take gold anywhere in the world and there will be a buyer, which can't be said for many other commodities," he said.
Cutifani predicts gold to remain above US$800 next year on the back of heightened demand.
- AAP