Commodity Online
BEIJING: Investors who are in doubt about the gold price in the coming months have some soothing words from the Chinese Gold & Silver Exchange Society.

Gold prices are set to cross $1,200 per ounce in coming two years’ time, that is what the chairman of Chinese Gold & Silver Exchange Society Feng Zhijian said.

Addressing a conference, Feng said the price of the precious metal may rise as the global recession and political instability in some parts of the world sustain its appeal as a haven investment.

Gold for immediate delivery has gained 6 per cent this year as the worst global recession since World War II increased its investment appeal. The metal touched a record $1,032.70 in March last year.

Meanwhile, Calyon, the investment banking unit of Credit Agricole SA, raised its 2009 forecasts for gold and silver as a weaker dollar increases demand for the precious metals as an alternative investment.

Calyon said gold will average $935 an ounce this year, up 1.1 per cent from previous estimates, and will average $975 next year. It raised its 2009 silver forecast by 4.6 per cent to $15 an ounce and said the metal will average that price next year.

Calyon raised its 2009 platinum forecast by 6.1 per cent to $1,115 an ounce and said the metal will average $1,110 next year. Palladium will average $263 an ounce this year, down 0.2 per cent from the previous forecast, the bank said, adding that the metal will average $300 in 2010.