BEIJING (Commodity Online): Gold prices may reach all time high of $2,075 an ounce in December this year as mainland China's gold buying from Australia rose sharply, said Saxo bank in a commodity snippet. Our recommendation is to buy gold now before the gold price escalates further higher, the bank added.

According to the Danish investment bank, yellow metal has jumped past coal as Australia's second most beneficial physical export to China, with revenue up a whopping 900% for your first eight months of this year, bringing in $4.1 billion.

Chinese purchasers are hoarding the valuable metal amid a slowing economic climate, property-buying restrictions and uncertain monetary markets as its central financial institution raises its holdings.

According to Australian Bureau of Statistics, the unparalleled jump in gold revenue, together with ongoing acceleration of export revenues for other commodities led by coal -- up 80% to $4 billion -- caused total exports to China to increase by 10.7% for the 12 months to August.

Shipments of Australia's greatest export, iron ore, had been up 20% for exactly the same time period however the total worth of $26.9 billion was down 5% in comparison to last year, because of the mid-year price slump.

The bank continued that, “China's foreign currency reserves of gold are reduced and its move to construct them up will provide an essential base demand for gold. Gold has possible to break all time high of $1,921 an ounce throughout December this year.”

“Overall we carry on to determine further upside possible for gold and also to a lesser degree silver as decreased demand from industrial customers raises the stress on monetary traders to help maintain the supply surplus down,” they added.

The central banks of Brazil and Ukraine were the only notable official sector buyers of gold a few weeks ago, as sales of the precious metal started to outpace purchases following several quarters of sustained demand from emerging market central banks eager to diversify their reserves.

“Using the open ended dynamics of quantitative easing, QE3, we see the possible for gold reaching the 2011 high at $1,921/oz throughout December following an preliminary time period of consolidating as $1,800 offers powerful resistance,” analysts with Saxo bank noted.

Into 2013 the rally might ultimately consider us up and over the physiological barrier of $2,000 prior to reaching a technical goal of $2,075, the financial institution mentioned. The definite line in the sand beneath is now $1,500, but we anticipate technical support in the 200-day moving average, presently at $1,659, will postpone any downside attempts, Saxo Bank concluded.