The gold prices are on a song, and they hit a multi year high of 1100 dollars only last week. That was on the news that India has purchased 200 metric tons of the metal from IMF as part of it’s efforts to shore up the currency value. There are reports of continued buying of the metal by countries like India and China, with a view of diversify their investments. Now we might see other strong countries like Germany, France and Japan joining the bandwagon. None of these countries would like to risk their further investments into uncertain US treasury bills.
So we can safely expect the Gold prices to hit the 1200 dollars to an Ounce mark before the end of the second quarter of 2010.